What Does Liability Insurance Cover?

car insurance paperwork with car key

 

Auto liability insurance is required by law in most states. This type of insurance is a two-fold plan that covers property damage and bodily injury. While these are separate coverages, they are both legally required. This means that you’ll be covered when it comes to expenses from injuries to others or property damage if you are at fault. So what does liability coverage pay for, what is the auto liability insurance definition, and how can you set limits in Louisville? Learn more with our finance team at Cross Chrysler Jeep FIAT.

How Does Liability Insurance Work?

As mentioned above, you’ll find that both bodily injury and property damage fall under liability insurance coverage. However, each has its own limits. There are minimum requirements set by the state that you’ll have to have, but you can also add higher limits based on your needs. Liability insurance covers the following:

Bodily Injury

  • Medical and hospital bills
  • Any long-term nursing care that may be needed
  • Funeral expenses in the event of a fatal accident
  • Rehab
  • Pain and suffering
  • Lost earnings

Property Damage

  • Repair expenses
  • Necessary part replacement
  • Vehicle damage
  • General property damage (house, personal property, etc.)
  • Pets

The main takeaway from this coverage is that it’s meant for the victim of the accident, not the driver at fault. This is why it’s also important to set the proper limits on your liability coverage to align with how much you can offer.

Liability Coverage Limits

You’ll want to set up your plan with our Lexington agents to discuss your coverage limits in depth. These limits can either be split or housed as one limit. Here’s a quick breakdown on how that works:

  • A split limit will allow you to select individual maximums for bodily injury payments per person, for all people injured, and all property damage
  • With a single limit, there is no total limit per person, the lump sum will simply be spread across all those injured and all property damaged

Learn More About Insurance Coverage at Cross Chrysler Jeep FIAT

Find out more about coverage for your new or used vehicle with our finance team near La Grange as well as more about the auto liability insurance definition, coverage, and cost. We look forward to helping you get the coverage you need. Contact our team in the meantime with any questions.

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