Drivers who are looking for auto insurance coverage of personal injuries need to understand the difference between bodily injury liability coverage and medical expense protection. One type of coverage protects the driver and the occupants of his or her vehicle, while the other pays for medical bills incurred by people riding in the other vehicle when an at-fault accident occurs.
Bodily injury liability coverage is required by law in most parts of the United States. It pays for the medical bills and economic loss incurred by the occupants of the other vehicle. A driver can buy the minimum amount of protection required by law or a higher level of coverage if he or she wishes to do so.
Medical expense coverage is usually required in no-fault car insurance state.s. This is the part of the policy which pays for the medical bills incurred by the driver and his or her passengers.
In a no-fault state, an injured person’s own insurance company will pay for reasonable medical bills and expenses related to the accident. A minimum level of protection will be mandated under state law in jurisdictions where this type of protection is required. A person who has a good medical insurance plan in place may want to limit this type of protection to the minimum required by law, while those who don’t have a plan may want to buy a higher level of protection.