What Does Liability Insurance Cover?

Tiny car with insurance documents

Automotive liability insurance always covers both bodily injury and property damage to another party or parties if you’ve been involved in an accident and are found to be at fault. Though the bodily injury and property damage coverages are actually separate, they are both legally required, and together, make up your liability insurance policy. Remember, as opposed to personal coverage, liability coverage protects you against damage you cause to other people or their property by covering their damages. Read on or contact us with additional questions.

How Does Liability Insurance Work?

Bodily injury and property damage fall into your overall liability coverage, but each coverage policy can have its own unique liability limits. Though there are minimum limits set by the state, you can set your own limits based on how much risk you are comfortable with taking on, so long as they meet the minimum coverage amounts. Liability insurance covers the following:

Bodily Injury

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

Property Damage

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

The key takeaway here is that liability insurance coverage is for the victim of the accident, not the driver at fault. It’s also important to set proper limits on your liability coverage that align with how much you’re able to offer.

Liability Coverage Limits

Be sure to discuss liability coverage limits with your Williston or New Town insurance broker. Limits can either be split, or housed as a single limit. Here’s how that works:

  • A split limit will allow you to choose individualmaximums 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 will simply be spread across all those injured and all property damaged.

Learn More About Insurance Coverage at Ideal Auto

Ready to learn all there is to know about the coverage policies we can offer you such as extended warranty coverage, vehicle protection plans, and more here at the Ideal Auto finance center? Looking for more answers to your insurance questions like, “Do I need full coverage on a used financed car?” We’ve got you covered. Give us a call at 701-833-5995 now and we’ll be happy to help.

Ideal Auto 48.20342, -101.3122393.