What Does Liability Insurance Cover?

December 10th, 2018 by

Insurance concept. Businessman with protective gesture and insurance icons on wooden cubes: family and life, health, financial, and car insurance.

Auto liability insurance is a two-fold plan that covers bodily injury and property damage and is required by law in most states. Though these are technically separate they are both required to have and are often lumped together when people refer to liability insurance. This insurance covers expenses from property damage in Fairview or injuries to other people when you are at fault. So, what does liability coverage pay for? Let’s take a closer look at what it offers, should you get into a car accident in your new Mazda.

How Does Liability Insurance Work?

Your overall liability coverage is divided into bodily injury and property damage and each can have their own limits. The state will set a minimum level of coverage that you are required to carry, but you can build upon that coverage to a level that you feel comfortable with 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

Remember the key factor is that this coverage is for the victim of the accident, not the driver at fault. You will need to seek additional coverage to protect yourself. It’s also important to set proper limits on your liability coverage that align with how much you’re able to offer.

Liability Coverage Limits

When setting up your plan with you’ll have to discuss coverage limits with your Collinsville agent. 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 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 Auffenberg Mazda

When purchasing a new vehicle you will need to understand the intricacies of both your auto insurance and financing options. When selecting coverage make sure you are following state guidelines as well as selecting coverage that will meet your individual needs. If you have any questions, visit us in O'Fallon or simply contact us online.

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