What Does Liability Insurance Cover?

couple talking to finance guy

Covering both damages to persons and property, auto liability insurance is a two-fold plan that’s required by law in a majority of states across the country. Each plan is separate, but it’s mandatory in most places to have both. So if you’re driving around Chatham in your new Dodge,Ram and you’re at fault when you collide with another driver, liability insurance covers the expenses accrued by other people’s injuries as well as the damage done to their property. Interested in learning more? Then get a better snapshot of everything liability insurance covers, so you’re more knowledgable just in case you’re involved in an accident in the future.

How Does Liability Insurance Work?

Although damages to someone’s body and their property are included under the overall umbrella of liability insurance coverage, you’re allowed to set limits for each separately. There’s a certain minimum that’s set by state law for damages to each, but you’re by all means allowed to go beyond those minimums to an amount that you’re more comfortable with. With liability insurance, you’re covered for:

Injury to Persons:

  • Hospital and medical bills
  • Nursing care that may be needed long-term
  • Funeral expenses in the event of a fatal accident
  • Pain and suffering
  • Lost earnings
  • Rehab

Damage to Property:

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

One key thing to realize with liability insurance is that it covers the victim of an auto accident, and not the driver whose fault it was. Something else to remember with liability insurance is that you should set acceptable limits on your coverage, aligning said limits with the amount you’re able to offer.

Liability Coverage Limits

If you’re going to set up a liability insurance plan in Rochester, Decatur, or beyond, then one thing you’ll need to consider is your coverage limits. These limits can be separated, or lumped together in a single limit, and each way works like this:

  • A split limit allows you to select individual maximums for bodily injury payments per person for all persons injured and for all property damage.
  • A single limit makes it so that there’s no total limit per person but instead allows for a lump sum to be paid across everyone who’s injured as well as all property that’s damaged.

Come to Green Dodge to Learn More About Auto Insurance Coverage

If you’re thinking about leasing or buying a new vehicle like the new Dodge Charger, then it’s always good to not only be knowledgeable about which car best suits your needs, but it’s also handy to recognize all of the financing and auto insurance options available to you when you make your purchase. You should know what the dealership’s policy is on full coverage for a used financed car and/or gap insurance, along with what options are available to you. Be certain that you follow Illinois guidelines for coverage, while also choosing the one most suitable for your needs. Contact us at Green Dodge in Springfield and we’ll be more than willing to help you with your auto insurance coverage, and can answer any lingering questions you may have! Curious if you need an extended warranty? We can help walk you through whether or not it would be worth it.

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