What Does Liability Insurance Cover?
How does liability insurance work? This type of coverage is required by law in most states, and it is a two-fold plan that covers bodily injury and property damage. Each component is separate, but both are necessary. What does liability insurance cover? This plan takes care of expenses related to injuries to other people or property damage if you are the party at fault in a collision. North Bay GMC takes a closer look at the auto liability insurance definition and what is covered more in-depth below.
What Does Liability Coverage Pay for?
So, what does liability coverage pay for, exactly? Bodily injury and property damage are both included in your liability coverage, but there can be individual limits for each type of coverage. As long as you at least meet the minimum limits set by your state, you have the freedom to set limits that meet your needs in Manhasset and Bayside. We break down what is covered in each category below.
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
Once again, keep in mind that liability coverage is not for the driver at fault in an accident. This coverage is meant for the victim of an accident.
How Does Liability Insurance Work? - Liability Coverage Limits
How does liability insurance work, and how do you set coverage limits? Limits can either be split, or housed as a single limit. Here are the details:
- Opt for a split limit, and you are able to choose individual maximums for bodily injury payments per person, for all people injured, and all property damage.
- Opt for a single limit, and the lump sum will be divided to cover injured parties and property damage.
North Bay GMC Answers Your Insurance Questions
If you are purchasing a new or used vehicle at North Bay GMC, you want to make sure you have the proper insurance coverage. If you have questions about auto insurance, do not hesitate to contact us for more information.