Michigan Auto Insurance 101: What Is Bodily Injury Coverage?

Bodily Injury Liability coverage is one of the most important parts of your auto insurance policy, especially here in Michigan. It provides financial protection if you’re at fault in an accident and someone else gets injured. Without it, you could be left paying massive expenses out of pocket that could impact your financial future.

What Does Bodily Injury Liability Cover?

If you cause an accident that results in injuries to another person, Bodily Injury Liability coverage helps pay for:

• Medical bills – hospital visits, surgeries, physical therapy, and more
• Lost wages – if the injured person cannot work due to their injuries
• Legal expenses – attorney fees, court costs, and potential settlements if you’re sued
• Pain and suffering - compensation for the physical pain and emotional distress caused by the injuries. 

These expenses can add up quickly. Even a relatively minor accident can cost tens of thousands of dollars, and serious accidents can lead to claims in the hundreds of thousands, or even millions.

Recommended Coverage Limits in Michigan

Michigan law requires drivers to carry Bodily Injury Liability coverage, but the state minimums are often too low to offer real protection.

We typically recommend starting with $250,000 per person and $500,000 per accident—commonly referred to as 250/500 coverage. This level provides a much stronger safety net if you’re responsible for injuries in a serious accident.

You can also choose higher limits depending on your financial situation and risk tolerance. Keep in mind that if you select limits lower than 250/500, you’ll need to sign a form acknowledging that you understand the risks of carrying less protection.

Why Low Limits Put You at Risk

It might seem like carrying lower limits is a way to save money on your premium, but this approach can backfire. If you’re involved in a major accident and your coverage isn’t enough, you’ll be responsible for paying the rest out of pocket. This could put your home, savings, or other assets at risk.

With medical costs and lawsuits climbing every year, the right level of coverage is one of the best ways to protect your financial future.

Umbrella Insurance for Extra Protection

For added peace of mind, you may also want to consider an umbrella policy. This type of coverage extends beyond your auto policy limits. For example, if your Bodily Injury coverage maxes out at $500,000 but the claim is $1 million, your umbrella insurance can step in to cover the difference (up to the policy limit).

Umbrella policies are often very affordable, making them a smart way to add extra protection against large claims.

Key Takeaways

• Bodily Injury Liability covers medical costs, lost wages, and legal expenses if you’re at fault in an accident.
• Michigan requires this coverage, but the state minimums are not enough for most drivers.
• Start with at least 250/500 coverage and consider higher limits depending on your financial situation.
• Umbrella insurance can provide an additional safety net for large claims.

Final Thoughts

Bodily Injury Liability is more than just a required part of your Michigan auto insurance policy, it’s one of the most important protections you have on the road. Choosing the right limits ensures you’re not left financially vulnerable if an accident happens.

If you’re unsure whether your current coverage is enough, reach out today for a Michigan auto insurance review and make sure you and your family are fully protected.