For most people, they view auto insurance as coverage for damages or injuries to their vehicle or themselves. While this is not wrong, there is so much more to get from auto insurance. One of the policies that make auto insurance dynamic is the Bodily Injury Liability. So this policy actually has your back anyday and anytime. This doesn’t mean you are given a license to drive recklessly and use other vehicles on the road as your practice session.
The BIL, as it is commonly referred to, helps relieve you of the burden of repairing and treating other parties involved in an accident you caused. Unlike other policies in the auto insurance package, the BIL solely covers only third parties. When purchasing this policy as an inclusion to your auto insurance, your insurer usually represents it in a ratio form. If you are uncertain what it actually means, feel free to ask your insurance agent. You shouldn’t be paying premium for a policy you do not have complete understanding of.
The BIL is represented with two figures in ratio format. For instance, a 100/300 policy has a designated minimum and maximum coverage limit. The “100” is for individual expense coverage in a accident. This means you have $100,000 to take care for expenses if a single person is affected in the accident. The “300” represents $300,000 and is the maximum your insurer would spent on everybody involved in the accident in the other vehicle.