What Does Liability Insurance Cover?

Mans Hand Reviewing a Liability Insurance Agreement

Auto liability insurance is a necessity for many drivers as most states require it by law. What does this coverage involve? The auto liability insurance definition is that it is a two-fold plan that covers bodily injury and property damage. While each is its own individual coverage, you still need to have both. If you are the driver that is at fault in a collision, liability insurance covers expenses from injuries to other people or property damage. Thys Automotive Family is happy to further explain liability coverage in more detail for drivers in the Marshalltown and Cedar Rapids areas. We’re here to answer questions like, “What does liability coverage pay for?”

How Does Liability Insurance Work?

You are able to set individual limits for both property damage and bodily injury, even though they both fall under the umbrella of liability insurance. Keep in mind that there are usually minimum limits that are set by the state, but you do have the freedom to set limits that comfortably fit within your budget. Here is what is covered by liability insurance:

  • 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

What sets this type of coverage apart is that it does not cover the driver at fault, rather the victim of the accident. Another thing to keep in mind is that you will want to set proper limits on your liability coverage that align with how much you’re able to offer.

Limits on Liability Coverage

A necessary topic of discussion when setting up your insurance plan is coverage limits. You have the opportunity to split limits or combine each into a single limit.

  • 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 is divided amongst the injured parties and split to cover all property damaged.

Thys Automotive Family Answers Your Car Insurance Questions

If you are in the market for a new vehicle, you need to know about what credit score is needed to finance a new car and required and optional insurance coverage. Do not hesitate to reach out to the team at Thys Automotive Family with any questions you may have.

Thys Automotive Family 41.8857049, -92.2809576.