A Guide to “Bodily Injury Liability” Insurance in California

According to Nevada law, the individual at fault in a car accident should compensate those who suffered injuries. Bodily injury liability insurance assists in covering expenses related to physical injuries, including fractured bones, concussions, and soft-tissue damage. Additionally, property damage liability insurance pays for repairs to any property damaged in an accident caused by the driver. Nevada mandates that all drivers carry both types of liability coverage.

Selecting the appropriate level of coverage can be challenging. While Nevada sets minimum standards, many individuals may find obtaining higher bodily injury liability insurance beneficial. In the following sections, we will examine the details of bodily injury liability insurance and the factors to consider when deciding how much coverage to purchase.

What Is Bodily Injury Liability Insurance?

Bodily injury liability insurance, commonly known as BI, is a typical auto insurance policy component. It covers injuries that other drivers, passengers, and pedestrians sustain when an accident occurs, and the insured is responsible for them.

Two figures indicate the limits of bodily injury liability:

• The first figure shows the maximum payout for injuries to a single individual involved in an accident

• The second figure indicates the maximum amount the at-fault party can pay for all individuals injured in one accident, often called the “per occurrence” limit.

For example, if you have the minimum coverage in Nevada of 25/50 for bodily injury liability, your insurance will cover:

• Up to $25,000 for any one person and

• Up to $50,000 in total for all individuals injured in the accident.

You may also encounter a third number in Nevada auto insurance listings (25/50/20). This third number refers to property damage liability insurance, which covers damages you cause to someone else’s vehicle or property.

Bodily injury liability helps cover medical expenses for injuries to other drivers and passengers. In contrast, property damage liability assists with costs related to damage you inflict on another vehicle or property, such as a guardrail, fence, or mailbox.

Costs Covered by Bodily Injury Liability Insurance

Bodily injury liability insurance addresses all expenses related to physical injuries inflicted on others, extending beyond medical costs such as ambulance fees, hospital admissions, or rehabilitation services. It also includes coverage for the victims’ other expenses:

Lost Wages

If you collide with another vehicle and the other driver sustains injuries, they might require several months of physical therapy to recover. The injured individual may also lose their income because they cannot work or fulfil their duties. In such situations, the bodily injury liability in your car insurance can assist in covering their compensation. However, state laws may limit the compensation amount for lost wages that the injured party can claim.

Medical Expenses

A key aspect of bodily injury coverage is the medical expenses incurred by someone after an auto accident you caused. It can include emergency treatment, hospital fees, follow-up appointments, and necessary medical equipment like wheelchairs. Bodily injury liability insurance does not cover your medical expenses. To cover those, you should obtain optional Medical Payments Coverage (MedPay), Uninsured Motorist Coverage, or rely on other sources like personal health insurance or Medicare.

Legal Expenses

Following an automobile accident that causes injuries, you might face a lawsuit from the injured individual or their insurance provider. This situation may necessitate hiring a lawyer, which can be expensive. Bodily injury liability insurance can assist in covering these legal expenses.

Funeral Expenses

In the event of a fatal accident, bodily injury coverage can help pay for funeral expenses.

Suffering and Pain

If the injured person endures prolonged physical pain or emotional distress due to the accident, bodily injury coverage may provide compensation to the victim.

Individuals Covered by Bodily Injury Liability Insurance

Bodily injury liability covers the expenses for individuals injured in a car accident for which you are deemed responsible. These can include drivers and passengers in another vehicle, pedestrians, or passengers in your car. However, this coverage does not extend to your lost wages or medical bills if you are at fault for the accident. It may assist with your legal costs if you face a lawsuit related to the accident you caused.

Nevada’s Minimum Requirements for Bodily Injury Liability

In Nevada, all registered vehicles must have liability insurance for the entire duration of their registration, even if the vehicle is not used frequently. Bodily injury liability coverage has a limit, which is the highest amount your insurance will cover for a claim. This coverage typically includes two limits: one for each person and one for each accident.

In Nevada, the minimum bodily injury liability limits are $25,000 for each person and $50,000 for each accident. That means:

• The $25,000 per-person limit is the maximum your insurance will pay for injuries sustained by any individual in the accident.

• The $50,000 per-accident limit is the maximum your insurance will pay for all injuries in a single accident, no matter how many individuals are affected.

If you have the minimum insurance coverage and cause an accident that injures three people, your policy will cover up to $25,000 for each injured individual, with a maximum payout of $50,000 for the entire incident. If the total claims surpass $50,000, you should pay the difference at your cost.

In Nevada, the minimum coverage limits are often shown as 25/50/20, where the last number, 20, indicates the property damage liability coverage. This coverage protects:

• Other drivers

• Passengers in other vehicles

• Passengers in your vehicle

• Pedestrians and bystanders

Bodily injury liability covers various costs related to an accident, such as medical expenses, lost wages, ambulance fees, short- and long-term medical care, and loss of companionship.

If the damages from your accident exceed the state’s minimum coverage limits, you may be personally responsible for any remaining costs.

Umbrella Insurance and Bodily Injury Liability

Personal umbrella insurance is a type of coverage that provides additional liability protection beyond other policies, such as auto or homeowners insurance. This policy can assist you when a claim surpasses the limits of these primary policies and can also cover certain situations that those policies might not address.

Umbrella insurance is not just for instances when your auto or home insurance is insufficient. If you have a boat, a rental house, or face a lawsuit for slander or libel, an umbrella insurance plan can offer you extra security.

Personal Umbrella Policy (PUP) shields you from significant and potentially harmful liability claims or judgments. It activates when the liability limits of your primary insurance have been exhausted.

Umbrella insurance can be advantageous for nearly everyone, as accidents leading to high expenses can occur to anyone. This policy can ensure that you avoid out-of-pocket costs for another person’s legal or medical expenses if deemed responsible.

For example, if someone is hurt while using your pool or if you are responsible for a vehicle accident that injures another individual, an umbrella policy can assist you in covering your expenses. Up to the maximum amount of your policy.

Legal Consequences of Not Having Minimum Bodily Injury Insurance Coverage

You could be subject to serious consequences, including fines, license suspension, and potential legal action, if you do not possess the bare minimum of bodily injury liability insurance required by Nevada. Repeated violations result in harsher penalties.

The following are some consequences of driving without insurance:

Fines

In Nevada, driving without insurance is considered a gross misdemeanor. The fine for this offense can be up to $1,000.

License Suspension

Your driver’s license and vehicle registration could be suspended if you do not keep insurance.

Reinstatement Fees

You might need to pay reinstatement fees for your license and registration to be reinstated.

SR-22 Filings

If you are caught driving without insurance, you need to file an SR-22 form (proof of financial responsibility) with the DMV. This shows that you are meeting the basic insurance requirements. Usually, this obligation lasts for three years.

Legal Action

If you are responsible for an accident that results in injuries, you may be subject to lawsuits and could be required to pay for the damages using your personal assets.

Additional considerations include:

• Uninsured Motorist Coverage

Although minimum liability coverage is required, this may not be enough to cover expenses from a serious accident. You should consider adding uninsured/underinsured motorist coverage (UM/UIM) to safeguard yourself in case you are hit by someone who lacks insurance or has insufficient coverage.

• Consequences of Lapsed Coverage

Having insurance is not sufficient if your coverage expires. According to the Nevada Department of Motor Vehicles, you could face penalties for driving without insurance, such as losing your vehicle registration and paying fees to reinstate it.

• Financial Responsibility

If you or a loved one causes an accident and does not have insurance, you might need to cover costs yourself, like medical bills, lost wages, and property damage.

Why Minimum Coverage Might Not Be Enough

Nevada requires a minimum of $25,000 in bodily injury liability coverage per person and $50,000 per accident. However, this amount might not be sufficient in many situations.

These include the following:

• Uninsured and Underinsured Drivers

Around 10-12% of drivers in Nevada do not have insurance, and many others have low liability limits, which means they are underinsured. If an underinsured driver injures you, you may depend on your uninsured/underinsured motorist (UM/UIM) coverage to handle the extra expenses.

• Potential for Legal Action

If the at-fault driver's insurance does not fully cover your damages, consider suing them personally to seek compensation beyond their policy limits.

• Costs of Injuries

Severe injuries can result in high medical bills, lost income, and other expenses that may exceed the minimum liability coverage.

• UM/UIM Coverage

Uninsured/Underinsured Motorist (UM/UIM) coverage provides extra protection by covering injury costs from drivers without insurance.

• MedPay

Alongside UM/UIM, you should consider adding Medical Payments (MedPay) coverage, which can assist with your medical costs regardless of who is at fault.

How Much Bodily Injury Liability Coverage Should You Have?

In Nevada, the law mandates a minimum bodily injury liability coverage of $25,000 for each individual injured and $50,000 for all injuries in a single accident. That means your insurance will pay up to $25,000 for injuries to one person and $50,000 for injuries to multiple individuals involved in the same incident.

You can opt for higher coverage limits than the minimum required. Liability insurance only covers you if you are found responsible for an accident, paying for the injuries of others, or any damage to their property.

This insurance policy does not cover:

• Your personal injuries

• Injuries to family members residing with you.

• Damage to your belongings

The cost of bodily injury liability insurance depends on several factors, such as:

• Your age—Younger and older drivers often pay more

• Your driving history—More accidents and violations can lead to increased rates.

• Your vehicle—If it has high repair costs or is less safe, your insurance will be more expensive

Factors such as your zip code, credit score, and marital status also affect costs. Additionally, opting for more coverage will raise your premium. As a result, insurance can range from a few hundred to several thousand dollars annually, depending on your circumstances.

Bodily Injury Liability and Other Auto Insurance Coverages

Liability insurance consists of two parts: bodily injury liability and property damage liability. In Nevada, the law requires both types of coverage.

Bodily injury liability coverage helps pay for another person’s medical expenses if you injure them in a car accident. Meanwhile, property damage liability coverage covers the damage you cause to someone else’s vehicle or property.

For example, if you accidentally collide with another car, a mailbox, or a porch, this coverage can pay for the repairs. Like bodily injury liability, most states mandate a minimum level of property damage liability coverage.

Other types of coverage that ensure everyone in your vehicle is protected for medical expenses include:

• Uninsured / Underinsured Motorist (UM/UIM)—If you or your passengers suffer injuries in an accident caused by another driver who either lacks insurance (uninsured) or has insufficient insurance (underinsured) to cover your losses, this coverage will pay for your medical expenses.

• Medical Payments (Medpay)—This coverage pays for medical treatment for you and your passengers, regardless of who is at fault. It also covers injuries if you are hit by a vehicle while walking.

Negotiating a Settlement

Negotiating a bodily injury settlement with insurance companies can be complicated and often contentious. Insurance adjusters may use various strategies to reduce payouts, so claimants need to be well-prepared and strategic.

Here’s an overview of what the insurance claims process and negotiations might involve:

• Claim submission—Start by filing a detailed claim with the insurance company, outlining the accident, injuries, and related expenses. Make sure to include all necessary documents, such as medical records, bills, and evidence of lost income.

• Review by the insurance company—The insurer will examine your claim and the insurance policy, investigate the accident, and evaluate the damages you’ve documented. They might ask for more information or clarification.

• Initial settlement proposal—The insurance company usually presents an initial settlement offer, which is often less than the actual value of your claim, as they seek to reduce their payout.

• Counteroffer and negotiation—Provide a counteroffer that reflects your insurance coverage and a careful assessment of your damages. This phase involves negotiations to reach a mutually acceptable settlement amount.

• Final settlement agreement—Once both parties agree, a settlement agreement is created and signed. This legally binding document specifies the compensation amount and releases the insurer from further responsibility.

What Happens If My Insurance Coverage is Insufficient?

If your auto insurance does not fully cover the injured party's damages, they may take legal action against you for the remaining amount. You should consider higher policy limits if your budget allows, especially if you have assets you want to safeguard in case of a personal lawsuit for damages.

Does Nevada Provide PIP insurance?

No, it does not provide Personal Injury Protection (PIP) insurance, which usually covers medical expenses and lost wages regardless of fault in an accident. Nevada is a fault-based state that does not offer Personal Injury Protection (PIP) insurance options.

In Nevada, the insurance system relies on the at-fault driver’s insurance to cover damages. The closest alternative to PIP in Nevada is Medical Payments (MedPay) coverage, which assists with medical expenses following an accident.

Find a Qualified Personal Injury Attorney Near Me

You should understand bodily injury liability insurance in Nevada to protect yourself and others while driving. Knowing the required coverage, recommended limits, and any exclusions is vital to safeguard your assets in the event of an accident.

By keeping yourself updated, regularly reviewing and adjusting your policy, and considering extra coverage options, you can make informed decisions that provide peace of mind and meet legal standards. If you are involved in a car accident in Las Vegas, you should avoid direct communication with a claims representative. Consulting with a skilled personal injury lawyer can significantly influence the outcome of your situation. At Las Vegas Personal Injury Attorney Law Firm, we will negotiate with the insurance company and ensure your rights are upheld. Contact us today at 702-996-1224 to talk to one of our attorneys.