Nebraska Property and Casualty Practice Test

Bodily injury liability is a primary coverage under an auto insurance policy because it is designed to cover the medical expenses and related costs for injuries that an insured driver causes to other people in an accident. This coverage is essential as it protects the insured from potentially significant financial loss arising from lawsuits or claims if they are found at fault for causing injuries to others. In many states, including Nebraska, having bodily injury liability coverage is a legal requirement, which underscores its primary nature within the structure of auto insurance policies.

Collision coverage, while also important, specifically pertains to damage to the insured's own vehicle after an accident, regardless of who is at fault. Comprehensive coverage protects against non-collision incidents, such as theft or natural disasters, and is thus secondary to the fundamental need to address liability for bodily injuries caused to third parties. Property damage liability is another essential coverage, but it pertains only to damage caused to another person's property, not their physical injuries. As such, while both property damage liability and collision coverage are critical components of an auto policy, they do not take precedence over bodily injury liability as it directly relates to the safety and well-being of other individuals involved in an accident.