What Does Liability Insurance Cover?

Accidents happen, and are sometimes caused by even the best of Springfield Township drivers. That’s why everyone who gets behind the wheel needs to have the proper coverage, which is what liability insurance is for. What does liability insurance cover? How does liability insurance work? What does liability coverage pay for? Do I have to get it for mynew car? We’ve got answers to all of those questions for you below. Let’s start with an auto liability insurance definition.

An Auto Liability Insurance Definition

There are different kinds of auto insurance policies – collision, comprehensive, gap coverage, etc. What is liability coverage? Geico’s auto liability insurance definition is: “Liability coverage pays for property damage and/or injuries to another person caused by an accident in which you’re at fault.”

How Does Liability Insurance Work?

While both 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. 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. It’s also essential to set proper limits on your liability coverage that align with how much you can offer.

Liability Coverage Limits

When setting up your plan with your Bridgewater agent, you’ll have to 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

Springfield Acura is Here to Help

Our finance department will be happy to understand what kind of coverage you need when youbuy or lease a car from us. If you found this guide to be helpful, check out our other guide onwhat to do after an accident. We’re just down the road from Staten Island and we’re here to help, so drop by or contact us today!