by Gary Brown
When purchasing auto insurance most consumers focus on the wrong thing. Bodily Injury is THE most important coverage on your policy.
When car shopping, most of us focus on the car's features - the color, whether it is 2 door or 4 door, the stereo quality, how much wear is left on the tires, does the air conditioner blow cold air and how fast does the engine accelerate in traffic.
These are all important but they are substantially far less important than one single item on your auto insurance policy.
Ok, so you buy the car and call your agent for an auto insurance quote. Most consumers tend to then focus on what deductible to carry, and do we need full coverage or liability (if it is a used vehicle). Do you need towing, car rental, or glass?
Usually we never ask about the single most important coverage on your policy - Bodily Injury coverage.
Perhaps BI is just not understood very well. Perhaps the agent is not explaining it well enough. BI protects the "other" driver and injuries in their vehicle if you are at-fault. That's all well and good - to protect someone else. It's the law in most states but why should you worry about carrying high BI coverage when many consumers don't and leave you under-protected?
The answer is simple. Bodily Injury also helps protect your income and assets in the event you are sued. Let's say you carry $25,000 Bodily Injury but the other occupants have $50,000 in injuries, lost income, and related medical costs. You are personally responsible for anything over and above your limits. In this case, that is $25,000.
Likely you will be sued and lose. The other party, with the help of a qualified attorney, can then seek access to your assets and even perhaps to seek garnishment of a portion of your wages. It is a heavy price to pay when all you had to do was pay a little more in premiums to increase your BI up to $100,000 or $250,000.
If you currently carry less than $100,000 in BI coverage, you might be surprised at how little it costs to raise it to the next level. That small extra premium is certainly worth the cost and protection for your assets and income.
