What is bodily injury coverage for with my automobile insurance and do I have to have it?

James

Austin, TX.

James,

 Bodily-injury coverage includes medical bills and lost wages; property-damage coverage pays to repair or replace property you destroy, such as other cars or property you run into, such as fences. It can also pay for “pain and suffering” damages if someone sues you after a car accident — but only up to your liability limits.

 Remember, your responsibility doesn’t end at your liability limits. If you cause $65,000 worth of damage and have an insurance limit of $40,000, you’re personally on the hook for the remaining $25,000 and could be sued for it. The Insurance Information Institute (III) recommends you carry $100,000 of bodily injury protection per person and $300,000 per accident.

Excellent Question.