What Does Liability Insurance Cover?

car insurance paperwork with car key


As many drivers know, Auto liability insurance is required by law in most states. However, some can’t help but wonder how does liability insurance work and what is the auto liability insurance definition. This insurance covers expenses from injuries to other people or property damage if you’re the at-fault driver. In this guide, we’re taking a more in-debt look at what it offers, so you’re away in the event you’re involved in an accident near Waterloo with your new Ford car.

How Does Liability Insurance Work?

What does liability coverage pay for? Keep in mind that both property damage and bodily injury fall under your overall liability coverage, and each of them can have its set limits. While each limit is set by the state, you have the option of setting your limits based on how much you can afford. 

Let’s take a closer look at what liability insurance covers:

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

The main thing to remember is that this cover is for the victim of the accident. You’ll also want to set proper limits on your liability insurance to cover how much you can offer.

What Are the Liability Coverage Limits?

As you’re setting up your insurance plan with your local Mascoutah insurance agent, you’ll want to discuss what the set limits are. These limits can either be split or houses as a single limit. Below is quick look at how that works:

  • A split limit allows you to choose individual maximums for bodily injury payments per person, for all people injured, and for all property damage.
  • The single limit doesn’t have a total limit per person. The lump-sum gets spread across all those who are injured and the property that’s damaged.

Get More Details About Liability Insurance at Auffenberg Ford South Belleville!

We’ve answered, “What does liability coverage page for?” and “How does liability insurance work?” If you still have any lingering questions, don’t hesitate to give our finance team a call. We work hard to make your car-buying experience as stress-free and efficient as possible.

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