As I'm sure you know, everyone with a car is required to have insurance on it. However, attaining a deep understanding of auto insurance coverage is the last thing on our minds when we start driving. And as life continues, it may remain that way. Why bother educating yourself about it now? One primary reason is you make better decisions when you are well informed. This post will focus on explaining two coverage terms of your auto insurance policy, Bodily Injury Liability and Medical Payments.
Bodily Injury Liability Coverage is required to be on your auto insurance policy. In an accident that IS your fault, this coverage covers the cost of injuries to the other person!
Medical Payments Coverage is not required to be on your auto insurance policy. It covers medical expenses due to injuries (yours or your passengers) from an accident, whether it is your fault or not. Medical Payments also covers you as a pedestrian if you are injured when a vehicle hits you.
Take Away: The Liability portion of your auto insurance policy protects the other person, so you are not held liable to pay for their injuries. What about me? you may ask. Suppose you don't have health insurance or have high premiums on your health insurance. In that case, you may want to add Medical Payments coverage to your auto insurance policy!