What Does Liability Insurance Cover?

man holding steering wheel

Overwhelmed by choosing the right auto insurance coverage? Many Martinsville-area drivers contact our finance center with questions about what liability coverage pays for and whether additional coverage is necessary. Auto insurance consists of three primary types of coverage: liability, collision, and comprehensive. 

So what does liability insurance cover if you are involved in an accident in Danville? Liability covers the cost of hospital bills, property damage, and damage to other vehicles in the event that you are at fault in an accident. Read the guide below from Gunter CDJR Martinsville for a more detailed auto liability insurance definition.

How Does Liability Insurance Work?

What does liability insurance cover when it comes to the specifics? Bodily injury and property damage coverage have limits that are set by individual states. Liability insurance plans with higher coverage limits are often available at a higher monthly premium.

Collision insurance covers damage from a collision, going off the road, or hitting an object. Comprehensive car insurance covers non-collision-related damage beyond your control, including theft, vandalism, fires, and rockslides, weather-related damage, and accidents with animals. So how does liability insurance work when combined with collision and comprehensive insurance? You can either split your coverage limit, or consolidate it into a single limit:

  • Split Limit Policy — Each person pays up to an individual pre-set maximum for bodily injury and property damage payments.
  • Combined Single Limit Policy — Coverage for all components of a claim is limited to one dollar amount. 

What Does Liability Coverage Pay For?

What does liability coverage pay for in Reidsville, NC? Remember that liability insurance covers the victim, and not the driver who is at fault. After you find out what’s covered in your state, you can add coverage that’s specific to your needs. Liability insurance typically covers the following:

Bodily Injury Coverage

  • Medical and hospital bills
  • Long-term nursing care
  • Funeral expenses in the event of a fatal accident
  • Pain and suffering
  • Lost earnings
  • Rehab

Property Damage Coverage

  • Repair expenses
  • Replacement parts
  • Vehicle damage
  • Home and personal property damage
  • Veterinary expenses

Find Auto Insurance Coverage in Ridgeway 

We hope our auto liability insurance definition helps you to choose the auto coverage you need, but don’t hesitate to follow up with any questions! Our team at Gunter CDJR Martinsville is happy to tell you more about the difference between comprehensive, collision, and liability insurance. Contact us today for details on extended warranties, simple interest loans, and more!

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