What Does Liability Insurance Cover?

 

What does liability coverage pay for, and how does liability insurance work? Most states require drivers to carry auto liability insurance, which covers bodily injury and property damage. That means your insurance covers costs from injuries to other people around Swedesboro, NJ, or property damage when you are at fault. So, what else does liability coverage pay for? Take a closer look in this guide from Spirit Auto Center, and if you have questions, contact us. 

   

How Does Liability Insurance Work?

Now that you know the auto liability insurance definition let's cover the question, "How does liability insurance work?" While both bodily injury and property damage fall into your overall liability insurance coverage, each has its own set limits. The state typically sets minimum coverage limits, but you can have your own limitations based on your unique needs and comfort level while driving around Mullica Hill. Liability insurance covers the following:

Bodily Injury:

• Pain and suffering
• Lost earnings
• Medical and hospital bills
• Any long-term nursing care that may be needed
• Funeral expenses in the event of a fatal accident
• Rehab

Property Damage:

• Vehicle damage
• Repair expenses
• Necessary part replacement
• General property damage (house, personal property, etc.)
• Pets

It's important to remember that the main factors in liability coverage are for the accident's victim(s), not the driver that caused the accident in Sewell. To learn more car-buying tips, like how to refinance a car loan, visit Spirit CDJR online.

Liability Coverage Insurance Limits

When discussing "What does liability insurance cover?" with your favorite Penns Grove insurance agent, make sure you talk about coverage limits. Limits can either be split or lumped together as a single limit. Here's how it 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 is spread across all those injured and all property damaged

Learn More About Auto Insurance Coverage at Spirit Auto Center

You can learn more than the auto liability insurance definition from the finance experts at Spirit Chrysler Dodge Jeep Ram. Purchasing a new or used Chrysler, Jeep, or Dodge means properly reviewing and understanding all of your available financing and auto insurance options. If you have any questions, visit the dealership or give us a call today!