Car Insurance Coverage that Protects 3rd Parties
Bodily Injury (BI) Liability: While Florida does not require BI coverage, to go without it is a huge mistake. BI covers other people’s injuries for which you are held responsible (i.e. their lost wages, medical bills, and pain and suffering). Medical costs are one of the leading causes of personal bankruptcy in this country. Bodily Injury Liability Insurance is there to protect your personal assets, up to the coverage amount, in the event a judgment is entered against you. In addition, the insurance company will typically provide and pay for an attorney to defend a case that is brought against you.
Bodily Injury Coverage typically pays per person with a maximum amount to pay per occurrence. For example, if you purchase $100,000/$300,000 bodily injury coverage, your insurance company will pay each individual you harm, up to $100,000, but your insurance company will not pay more than $300,000 for injuries you cause in any one accident. So, if you traumatically injure two people driving together in another car, your insurance company will pay up to $200,000 ($100K each). But if four people were in that hypothetical other car in an accident that you caused, your insurance company will only pay a maximum of $300,000 for that accident.
But it is important to remember that both BI and PD coverage do not protect you or anyone on your insurance policy if you are injured. They are strictly there to cover others if you cause an accident.