What Does Liability Insurance Cover?

Auto liability insurance is a two-fold plan that covers bodily injury and property damage in the event of a collision. This type of insurance is required by law in most states, so be sure to double check with your state regulations to ensure that you get the coverage you need. So what does liability insurance pay for? Learn more with our finance team at Big Star Buick GMC.

How Does Liability Insurance Work?

Though both bodily injury and property damage fall into the overall liability coverage, you can separately set limits on both. There are minimum limits set by the state, though, so you’ll want to make sure you set your own limits with those in consideration. So what does liability insurance cover? 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

One key factor to remember about this coverage is that it’s meant to cover the victim of the accident, not the driver at fault. Based on this, it’s important to set limits on your liability coverage that aligns with how much you can offer.

Liability Coverage Limits

When you’re setting up your plan, you’ll want to make sure that you discuss coverage limits. These limits can either be split or housed as a single limit. Here’s a better overview of how that 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 will simply be spread across all those injured and all property damaged.

Learn More About Insurance Coverage at Big Star Buick GMC in Baytown 

No matter if you’re purchasing a new or used vehicle, you’ll need to go over your insurance coverage options. We can help you make sure you’re following state guidelines as well as getting the coverage you need. Learn more with our finance team, get the financing process started, or contact us with any questions in the meantime.