What Does Liability Insurance Cover?

When it comes to auto insurance, liability insurance is the bare minimum that’s legally required at least in most states. What does liability coverage pay for? The general auto liability insurance definition states that this kind of insurance covers any expenses due to injuries or property damage if you as the driver are at fault in an accident.

How does liability insurance work? The finance center at Land Rover Richfield goes over liability insurance in detail to show you how it can keep you protected if you get into an accident on the roads of Minneapolis! 

What Does Liability Coverage Pay For?

What does liability insurance cover specifically? In general, liability insurance covers bodily injury and property damage, but there are limits and maximums to these types of coverage. The limits are usually determined by you based on how much you’re comfortable with potentially spending.

Here’s how liability insurance works in terms of its two types of coverage:

Bodily Injury

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

Property Damage

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

It’s important for St. Paul drivers to know that per the general auto liability insurance definition, coverage provided is for the other driver who’s potentially injured in the accident. The driver at fault isn’t covered. This is why it’s important for drivers to set their limits and maximums based on what they can afford. 

What Are the Limits of Liability Insurance?

Now that you know what liability coverage pays for, it’s important to consider what your limits will be for your liability coverage policy. Limits can be split or set as a single limit.

Here’s how liability insurance works when it comes to limits:

• Split Limit: A split limit lets you choose individual maximum amounts for payments related to bodily injury. The payment limits are set per person for all people who are injured, and this limit also includes property damage payments. 
• Single Limit: This option doesn’t set a limit for each person. Instead, the total sum is spread across all people injured and all expenses related to propery damage. 

So, what does liability insurance cover, and what are its limits? Hopefully, you have a better understanding of how this type of insurance coverage works and why it’s so important to have. If you have questions about coverage limits or anything else related to liability insurance, reach out to the experts at Land Rover Richfield. Don’t forget to check out our other helpful car-buying tips on our website! 

Learn More About Liability Insurance in Richfield!

The general auto liability insurance definition is pretty straightforward. At the bare minimum, anybody injured or any property damaged in an accident where you’re at fault will be covered based on the limits of your policy. Knowing what it covers, it’s easy to see why it’s required for Edina drivers to have. Contact us with any questions you might have about liability insurance or how to set up your own policy!