What Does Liability Insurance Cover?

If you get into an accident and incur damage that will cost you money, what does liability insurance cover? Liability insurance covers expenses in two main categories: bodily injury and property damage. If you’re at fault in an accident, then your liability insurance pays for the damaged party’s medical expenses and for auto or property repairs. Read on to learn in detail what liability insurance pays for from the finance experts at Nyle Maxwell Chrysler Dodge Jeep Ram.

How Does Liability Insurance Work?

Depending on which state you live in, you’ll have a different minimum requirement for injury liability insurance, as well as for collision coverage. For Austin-area drivers who want to make sure they’re covered no matter what, there’s also the option to expand liability coverage to include more events. Most programs start with coverage for the following:

  • Bodily Injury
    • Pain and suffering
    • Lost wages or earnings
    • Medical bills and emergency services
    • Long-term rehabilitation and nursing care
  • Property Damage
    • Repair or replacement of auto parts and components
    • General property damage to housing or other forms of personal property
    • Major vehicle damage
    • Injury to pets

What Does Liability Insurance Pay For vs. Collision Insurance?

Keep in mind this major part of the liability insurance definition: it exists to protect drivers who aren’t at fault from the costly mistakes of other drivers — and does not cover the expenses of the driver at fault. To protect your own vehicle and property against damage costs that result when you were at fault, contact your insurance company to add collision insurance. Or you can choose comprehensive insurance, which also protects you from damage incurred off the road.

Setting Your Liability Coverage Limits

What does liability insurance cover for different injured parties or properties? You can decide and set up your plan accordingly. When you’re setting up your liability insurance coverage, your insurance agent will ask you to set coverage limits. You can either split your limits by plan, or set a single limit for both bodily injury and property damage.

  • Split Liability Limit — Empowers you to select different maximum coverage limits for different injured parties, and for all forms of property damage.
  • Single Limit — With a single limit, the lump sum of your total coverage will be spread out across all injured parties and damaged properties equally.

Find Out More About Liability Insurance from Nyle Maxwell Chrysler Dodge Jeep Ram

If you’d like to ask an expert for an auto liability insurance definition in more detail, Nyle Maxwell Chrysler Dodge Jeep Ram is here to help out! If you’re considering a model in our new vehicle inventory, like the Dodge Challenger or the Jeep Cherokee, we can also get you set up with flexible financing. Learn all about car financing and other financial aspects of the car buying experience when you visit us!

Nyle Maxwell Chrysler Dodge Jeep Ram 30.46983, -97.7881972.