What Does Liability Insurance Cover?

Auto liability insurance is required by most states in order to drive legally, so what does liability insurance cover and why is it so important? While auto liability insurance definition might differ slightly from insurer to insurer, it is typically a two-fold plan that covers bodily injury and property damage for which you are at fault.

That means that if you get into an accident on the Bartow road, your insurance covers the damages that the other driver receives. Let’s dive deeper into how does liability insurance work, and feel free to get in touch with us at Kelley Automotive Group for more finance information.

How Does Liability Insurance Work?

What does liability coverage pay for? Liability insurance covers both bodily injury and property damage, but you are often able to set your own limits. 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

Liability Coverage Limits

Because you can set up your own coverage limits, you can fine-tune your insurance plan to better suit your budget. One driver in Winter Haven might prefer a split limit, while another might prefer a single limit in Auburndale. There’s no right or wrong answer, so it all boils down to what is most comfortable for you. Let’s take a look at how the two limits work:

• Split Limit: A split limit allows you to specify maximums for bodily injury payments per person, for all people injured, and all property damage. 
• Single Limit: A single limit involves a lump sum that is spread across bodily injury payments per person, for all people injured, and all property damage. There is no specific limit per person or per category.

Learn More About Your Insurance Options with Kelley Automotive Group

Still have questions about what does liability insurance cover or how does liability insurance work? No problem! Contact us at Kelley Automotive Group to learn more, or simply stop by our dealership in Lakeland to chat with our finance team in person. We know that financial matters can be complicated, but we’re here to provide you with the information that you need to make the best choices possible.