What Does Liability Insurance Cover?

What is a good, standard auto liability insurance definition? How does liability insurance work, and what does liability coverage pay for? Auto liability insurance is a two-fold plan that covers bodily injury and property damage, required by law in most states. Though these are separate, they are both legally required.

What does liability coverage pay for? Liability coverage pays for property damage and injuries if you, the Englewood driver, are at fault. Allow us to answer the question “What does liability insurance cover?” below, and once you’ve finished, check out our car finance and insurance information hub to learn more.

How Does Liability Insurance Work?

While bodily injury and property damage fall into your overall liability coverage, each can have its set limits. Though the state sets minimum limits, you can set your limits based on how much you are comfortable with. How does liability insurance work? What does liability insurance cover? Liability insurance covers the following:

Auto Liability Insurance Definition: 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

Auto Liability Insurance Definition: Property Damage

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

Remember, the critical factor is that this coverage is for the victim of the accident, not the driver at fault. It’s also essential to set proper limits on your liability coverage that align with your available coverage.

Liability Coverage Limits

When setting up your plan with your Harriman, NY agent, you must discuss coverage limits. Limits can either be split or housed as a single limit. Here’s how that works:

• A split limit will allow you to select individual maximums for bodily injury payments per person, for all people injured, and for 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 Benzel-Busch Family of Dealerships

We know that considering liability insurance can be stressful, which is why our team at Benzel-Busch Family of Dealerships is here to help every step of the way. If you have any questions about the definition of auto liability insurance or are still wondering, “What does liability coverage pay for?”, visit us at Englewood or simply contact us online.

Be sure to visit our different locations: Benzel-Busch, Mercedes-Benz of Orange County, Audi Meadowlands, and Genesis of Englewood.