But I Thought I Had Full Coverage: Bodily Injury or Liability Coverage
Previously, we posted an entry about "full coverage" on you car and what was actually covered vs. what was not. This will be the first in a series of entries covering the various types of insurance coverage, whether they are typically included on your coverage, and why each is important to consider. For more information on auto insurance coverage in Kentucky, you can visit the Consumer Page of Kentucky Department of Insurance's website here, or look at this publication produced by the Department of Insurance which explains many of the common terms used in the insurance industry.
The first and most basic type of auto insurance coverage is really covers two different type of loss, "liability coverage." Liability coverage can cover bodily injury or property damage. This entry will discuss liability coverage for bodily injury and a futre entry will cover liability coverage for property damage. Liability coverage for bodily injury covers you, the driver (or car owner), for injury to another person caused in an accident involving your vehicle. Simply put, if you or someone else driving your car, get in a wreck and hurt someone else and the accident was your fault, then you have coverage take care of that person's injury. This is important because without this coverage, that injured person could try to sue you personally for assets you have, like a house, car, boat, or other thing of value. The insurance is there to try and prevent this from occurring.
Liability coverage for bodily injury in mandatory in Kentucky. KRS 304.39-080, KRS 304.39-090. That measn that if you own and drive a vehicle in Kentucky, then you must have this type of coverage. As a consequence, if you go to get car insurance your insurance broker must and will include this type of coverage in any policy you might purchase. Therefore, you do not have to ask for it.
What you may want to be concerned with is how much coverage is there on the policy for this type of loss. The minimum amount allowed in Kentucky is $25,000 per person $50,000 per accident. KRS 304.39-110. This means that your policy must have at least $25,000 to cover injury to a person that is injured, and $50,000 to cover everyone that might be in the car that is injured. In other words, each injured person in the other car can only recover up to $25,000 and no matter how many people are injured in the other car, together, they can only recover up to $50,000 from your policy.
The question at this point is: is that enough coverage? If the people in the other car are hurt bad enough, this may not be enough insurance to protect you from personal loss of money. That is, the people in the other car may see that you have assets that are worth more than the insurance coverage you have and may consider forgoing the insurance coverage and come after you personally. To avoid this, if you can afford it, you may want to consider having limits that are higher than the 25/50 (this is how it is commonly abbreviated). While many different amounts of coverage are available, the most common coverage amounts above 25/50 are 50/100 (meaning $50,000 per person and $100,000 per accident), 100/300, 200/500, or even 500/1,000. Please note that this type of coverage will also apply if you are driving a car and get into a wreck injuring someone who is a passenger in YOUR car as well. However, it does not apply to any injury to you. There are other types of coverage in that event that will be discussed in future entries.
If you have questions about the type of coverage you have on your car or truck, or if you have been involved in an accident and need help sorting our what will be covered, what won't, and other options you might have, call or e-mail the attorneys of Bahe Cook Cantley & Jones PLC for help.
