What Does Liability Insurance Cover?

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Liability insurance is required by law in most states, and is a two-fold plan that covers both bodily injury, and property damage. Though these are usually separate, they are both legally required. But what does liability coverage pay for? Part of it is in the name. Auto liability insurance definition says that it covers expenses from injuries to other Carroll drivers, as well as property that belongs to others, when you’re ruled as at fault. Macke Motors, Inc. will provide you a closer look at what it offers, as well as a better explanation to the question, “How does liability insurance work for Fort Dodge drivers?” 

How Does Liability Insurance Work?

While both bodily injury and property damage fall into the auto liability insurance definition, each can have their own set limits. Each state has a minimum limit set on it, however you can often have your own limits based on how much you’re willing to pay. If you’re wondering what does liability insurance cover, it includes: 

Bodily Injury

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

Property Damage

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

The most important thing to remember is what does liability insurance pay for, and that is the victim of the accident and not the driver at fault. This means it is important to set proper limits on your coverage, based on what you’re able to offer. 

Limits of What Does Liability Cover

When setting up your plan, it’s important to know the answer to,
“What does liability insurance pay for?” You’ll also want to know what limits are involved so you and your insurance agent around Lake View can better plan. Limits can either be split, or housed as a single limit. Here’s how that works:

  • A split limit allows 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 How Liability Insurance Cover at Macke Motors, Inc.

Purchasing a new or used vehicle means understanding all about the finance and auto insurance options, and that is where our finance department comes in handy. You can find more about the car buying process with our selection of car buying tips and tricks, so that you get the best deal possible no matter what you’re looking for. 

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