BIPD Insurance: All You Need to Know

Are you in search of adequate auto insurance coverage? In the United States, drivers need to have insurance to cover any liabilities resulting from accidents. Among the available auto insurance policies is BIPD insurance.

What is BIPD Insurance?

BIPD is an acronym for Bodily Injury and Property Damage insurance. It is a liability car insurance policy that covers damages to property and injuries to people in the event of an accident where you are at fault.

The policy provides coverage for the following:

With BIPD insurance, you can protect yourself financially against expenses arising from accidents caused by your fault.

How BIPD Insurance Works

When you purchase a BIPD insurance policy, you agree to pay a certain premium amount to the insurer. In the event of an accident, the insurer will cover the costs up to the policy limits.

For instance, suppose you have a BIPD policy with a limit of $50,000 for bodily injury and $25,000 for property damage. If you cause an accident that results in $75,000 in bodily injury and $30,000 in property damage, your insurance will cover the first $50,000 in bodily injury and $25,000 in property damage. You will be responsible for the remaining $25,000 in bodily injury and $5,000 in property damage.

It is essential to note that the policy limits do not cover your expenses if you are the one injured or your vehicle damaged in an accident.

Why You Need BIPD Insurance

BIPD insurance is mandatory in most states in the US, and it is a legal requirement to carry it. The coverage ensures that you are protected against legal liabilities arising from accidents you cause on the road.

The benefits of having BIPD insurance include:

• Providing financial protection to cover accident expenses
• Meeting the legal requirements of your state
• Protecting your assets from being seized to cover damages caused by your fault

FAQ

What is the minimum BIPD insurance required by law?

Each state has its requirements for minimum BIPD coverage. In most states, the minimum coverage is $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage.

What happens if I cause an accident and my BIPD insurance limit is not enough to cover the damages?

If the cost of damages exceeds your BIPD insurance limit, you will be responsible for the remaining expenses. You may have to pay from your personal assets to cover the costs or face legal action to recover the damages.

Does BIPD insurance cover me and my passengers?

No. BIPD insurance only covers the damages caused by the policyholder to other people and their property.

Can I increase my BIPD coverage limits?

Yes. You can choose to increase your BIPD insurance coverage limits to provide more protection in case of an accident. However, higher coverage means higher premiums.

Does BIPD insurance cover hit-and-run accidents?

No. BIPD insurance covers accidents where you are at fault, and the other party can be identified. For hit-and-run accidents, you need to have uninsured motorist coverage or collision coverage.

Conclusion

Having BIPD insurance is essential for any driver to protect themselves against the financial loss resulting from accidents. The policy provides coverage for bodily injury and property damage caused by your fault, ensuring you comply with the legal requirements of your state.

If you have any questions about BIPD insurance or want to purchase a policy, talk to a reputable insurance agent who can help you choose the right coverage for your needs and budget.