What factors usually lead to higher car insurance?
Bodily injury liability coverage also includes pedestrians. If you are unfortunate enough to be involved in such an accident, your bodily injury liability insurance will cover the expenses incurred. The other party need not be in any vehicle.
This type of coverage will protect you financially by taking on the expenses per person in any accident. There is, however, a limit as to how much the insurance company will pay for per accident. In insurance terms, the coverage is indicated by a “split limit”. For example, the insurance company will pay up to $50,000 per person injured in the accident and it will pay up to a total of $100,000 for the whole accident. Any costs beyond that would be for you to shoulder.
When taking out bodily injury liability car insurance, you should take your personal assets into consideration. If you do not have too many assets and your income is not that high, then a 50,000/100,000 split would be adequate. However, if you have a lot of assets at stake, you should consider a higher split value, say 100,000/300,000 coverage. If you take out a smaller amount than you need in the future, then you would end up having to shoulder the extra expenses incurred during the accident. That might mean having to sacrifice your assets as you would have to come up with the cash needed to pay for the other party’s needs.