PAP Question: BI vs. MP

[Examinator]

Can anyone explain why BI limits range so much higher than those for MP? If I understand it correctly, BI is a third party coverage that applies when the first party is in an at-fault accident. MP is a first party coverage that applies when the first party is in an at-fault accident (or if something no-faultish happens like your head is shut in the door or something). In a serious first-party-at-fault accident, are first party injuries less severe than third party injuries?

[Levin]

Can anyone explain why BI limits range so much higher than those for MP? If I understand it correctly, BI is a third party coverage that applies when the first party is in an at-fault accident. MP is a first party coverage that applies when the first party is in an at-fault accident (or if something no-faultish happens like your head is shut in the door or something). In a serious first-party-at-fault accident, are first party injuries less severe than third party injuries?Would personal health insurance affect this?

[Estrella]

MP only pays direct medical cost (and death benefits? I don't remember the details). BI could include such things as pain and suffering, wrongful death, punitive damages, etc. that potentially cost much more.

[laurisssa]

In addition, MP isn't needed if you and everyone who rides in your car has health insurance. MP is mainly used to cover the deductible of your health plan. So higher limits aren't needed or used.

[JustASix]

MP only pays direct medical cost (and death benefits? I don't remember the details). BI could include such things as pain and suffering, wrongful death, punitive damages, etc. that potentially cost much more.
Aren't punitive damages excluded?

[Estrella]

Some states disallow insurers to pay punitive damages. In those case, they are excluded. My recollection is that this was specifically mentioned for commercial insurances, but I don't know if "no punitive damage" also applies to personal insurances.

[JustASix]

Some states disallow insurers to pay punitive damages. In those case, they are excluded. My recollection is that this was specifically mentioned for commercial insurances, but I don't know if "no punitive damage" also applies to personal insurances.
I looked it up. You're right. Punitive damages are covered for personal auto.

[Examinator]

Only in certain states though, right?

[CABC]

Yes, it varies by the state and/or Insurere whether Punitive Damages are covered under Personal Auto Insurance BI Liability.