What Does Liability Insurance Cover?

Most states require drivers to have auto liability insurance as a two folded plan that covers bodily injury and property damage. While these insurances are different, they’re both required to be on Glen Allen streets. But what does liability coverage pay for? This covers expenses from injuries or property damage to you and others. But how does liability insurance work? Read on to learn more from our finance team at Rick Hendrick Chevrolet Richmond.

How Does Liability Insurance Work?

So how does liability insurance work? Well, the auto liability insurance definition is coverage that covers bodily injury and property damage with their own distinguished limits. While there are minimum limits set by the states, you can choose your own limits based on your driving habits throughout Goochland. But what does liability coverage pay for? Check it out below: 

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

The key of the auto liability insurance definition is that the coverage is for the victim of the accident, not the person who is at fault. Be sure to set the right limits of liability coverage so you know what you’re covered for. 

Liability Coverage Limits

When you’re discussing your auto liability insurance definition and plan with your Henrico agent, be sure to discuss whether the limits can be split or single. Here is how liability insurance 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
• A single limit is when there is no total limit per person, the lump sum will simply be spread across all those injured and all property damaged

Explore Insurance Coverage at Rick Hendrick Chevrolet Richmond

Whether you want a new or certified pre-owned vehicle, you will need proof of liability insurance to lease or finance the car. Be sure to review the state guidelines with your agent to ensure you’ve selected the right coverage. Contact us at Rick Hendrick Chevrolet Richmond with any additional car buying questions.