What Does Liability Coverage Pay For?
Liability insurance is usually required in most states as the minimum amount of automotive insurance. How does liability insurance work, and what is covered with liability insurance? Learn the basics of liability insurance with the finance team at Karl Klement Ford, so you can feel more confident and secure driving on the Fort Worth roads.
Auto Liability Insurance Definition
Auto liability insurance is a two-part insurance policy that covers both physical injury and property damage. They are separate coverages but are both required by law. This means that if someone else is injured or if someone else’s property is damaged and you’re at fault, then you are covered. So, what does liability coverage pay for? Let’s find out.
What’s Covered with Liability
So, how does liability insurance work? Physical injury and property damage are both covered with liability, but each has its own set of limits. Minimum limits for liability coverage are set by each state, but you can also determine your own limits based on your comfort level. Here is what is covered with liability insurance:
Physical/Bodily Injury:
- Rehab
- Pain and suffering
- Lost earnings
- Medical and hospital bills
- Any long-term nursing care that may be needed
- Funeral expenses in the event of a fatal accident
Property Damage:
- General property damage (house, personal property, etc.)
- Pets
- Repair expenses
- Necessary part replacement
- Vehicle damage
It’s important to note that if you get into an accident on the Springtown roads, then the coverage is for the victim of the accident and not the driver who is responsible.
Limits of Liability Coverage
Before you hit the Boyd roads, you’ll want to set up your liability coverage limits with your insurance provider. You can either split the limits or have them as a single limit. Here are the limits of liability insurance work:
- Split Limit: This allows you to choose individual limits for each person, for all of the people injured, and for any property damage.
- Single Limit: There is no limit for each person with a single limit. Instead, the lump sum is spread across all of the injured people or damaged property.
An important thing to remember is to set limits that you’re comfortable with and that line up with how much you’re able to offer. Now that you know how liability insurance works, you can drive more confidently on the Decatur roads. Speak with our finance center to go over your options.
Discover Your Options at Karl Klement Ford
You now know what liability coverage pays for, now you just have to choose your limits and decide what you’re comfortable with. Contact us to speak with a team member and get your new or used vehicle covered.
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