What Does BIPD Mean In Insurance?

May 31, 2022

Bodily Injury & Property Damage Liability Insurance is a type of insurance that protects you and your property from bodily injury or damage. It can help regardless of whether you’re the damager or damaged, so to speak. Read on to learn more about how it works and what’s covered. 

What Does BIPD Mean In Insurance?

What Is BIPD Insurance? 

Bodily Injury & Property Damage (BIPD) Insurance provides coverage for the costs associated with injuries, including medical bills, lost wages, rehabilitation expenses, and pain and suffering. BIPD also covers damages to your vehicle, home, or personal belongings if they are damaged as a result of someone else’s negligence. This includes things like broken windows, water damage, and even theft. If you have BIPD insurance, you can receive compensation in case of an accident.

How Does BIPD Insurance Work? 

BIPD Insurance is at the heart of your insurance policy. If you end up in a situation where you injure another person or damage their property by accident, BIPD insurance can help protect you from paying out large sums of money. It does this by covering any financial losses that you may incur due to the accident. 

A lot of the time, you don’t need to worry about these types of situations because most companies will cover them under your auto insurance policy. However, some policies do not include BIPD insurance. If yours doesn’t, you’ll want to look into purchasing additional coverage.

How Do I Get BIPD Insurance?

If you own a car, motorcycle, boat, RV, or any other motorized vehicle, you need BIPD insurance. You may be able to get this through your auto insurer, but there are many companies that offer their own BIPD policies. To find out which ones do, check online or call your agent. 

If you don’t drive a car, you still need BIPD insurance because you could be liable for someone else’s injuries or property damage. 

How Much Does BIPD Cost?

The cost of BIPD varies depending on several factors, such as: 

  • Your age 
  • Your driving record 
  • How much liability insurance you already carry 
  • Whether you have been involved in an accident before 
  • What kind of vehicle you drive 
  • The value of your vehicle 
  • Where you live 
  • Other insurances you might have 
  • Any discounts you qualify for 
  • And more… 

You should always shop around for the best price when purchasing insurance. But keep in mind that the cheapest policy doesn’t necessarily cover everything you need. For example, some cheap policies only pay for your medical bills, while others won’t cover your property damage. It’s important to consider all the details of your policy so you know exactly what you’re paying for. 

What Are The Limits Of BIPD Coverage? 

Almost all U.S. states will require your vehicle to have a minimum level of liability insurance to offer financial protection in the event of an accident. For this reason, when you purchase your car insurance, you’ll be asked to choose coverage that meets the minimum limit set by your state. 

However, some states allow drivers to purchase higher limits than the minimum required. These higher limits are called “personal injury protection” or “PIP.” PIP pays for the medical bills and lost income resulting from accidents. Many people opt for higher PIP limits because it helps reduce the amount of money they must spend out-of-pocket after an accident. 

Higher PIP limits can also provide greater peace of mind. They mean you won’t have to worry as much about how much you’ll have to pay if you’re sued over an accident. 

States will use a three-tiered system to represent their coverage limits. Rates vary by state, so be sure to check with each provider if you’re not sure. 

Are There Different Types Of BIPD Policies? 

There are two main types of BIPD policies available today. One type covers both bodily injury and property damage; the other covers only property damage. 

A BIPD policy that covers both bodily injury and personal property damage is known as a comprehensive policy. Comprehensive policies usually come with lower premiums than those that cover just property damage. This means you’ll save money over time. However, comprehensive policies often exclude certain kinds of damages, like medical expenses. So make sure you read the fine print carefully. 

A BIPD policy that only covers property damage is known as a collision policy. Collision policies can be cheaper than comprehensive policies but may not include any benefits for bodily injury. Be sure to ask your agent which policy would work best for you. 

Is BIPD Insurance Mandatory? 

In most states, you must buy BIPD insurance to own a motor vehicle. You don’t have to get it though. If you want to avoid having to pay extra fees or buying a separate policy, you can simply decline to sign up for one. 

If you do decide to buy BIPD insurance, you’ll find that rates tend to be lower than standard auto insurance. That said, there are still plenty of reasons to go ahead and get it. First off, it provides additional protection against the costs associated with injuries and property damage. Second, it gives you more freedom to drive without worrying about getting into trouble. And finally, it makes it easier to compare different providers since you won’t have to factor in the cost of a separate policy.  

Why Choose BIPD Insurance? 

One of the biggest advantages of BIPD insurance is that it’s easy to understand. It’s a simple matter of comparing the cost of your current auto insurance to the cost of a BIPD policy. The difference between the two should be obvious. 

Another benefit of BIPD insurance comes when you need to file a claim. Most insurers offer free claims assistance, meaning you won’t have to deal with call centers or customer service representatives. Instead, all you have to do is give them a call and let them know what happened. They’ll then take care of everything else. 

Finally, BIPD insurance offers great value. It typically has low deductibles and high limits. As such, it’s very affordable. Plus, it doesn’t require you to purchase a separate policy. All this adds up to a good way to protect yourself from expensive accidents. 

Final Thoughts 

BIPD insurance isn’t right for everyone. But if you’re looking for a cheap alternative to traditional auto insurance, it could be worth considering. Just keep in mind that it does have its limitations.