What Does Liability Insurance Cover?

insurance paperwork with car keyn

You can’t drive through Ooltewah and Lookout Mountain without liability insurance, but just what does liability insurance cover and why is it so important? The auto liability insurance definition states that it must cover both bodily injury and property damage. This includes everything from injury expenses to property payments if you are found at fault in a driving accident. Let’s take a closer look at what does liability coverage pay for.


How Does Liability Insurance Work?

You know that liability insurance must cover injuries and damages in Manchester and beyond, but the limits of that coverage might vary from plan to plan. The state sets certain minimums for legal purposes, but you can also get additional coverage to broaden your protection. However, it’s important to strike the right balance, so you get good coverage without breaking your budget–or the costs of things like liability insurance, GAP insurance, and more can really build up.

In addition to different minimums and maximums, you can also choose to split your limits or house them as a single limit. What does this mean?

  • Split Limits: This method allows you to select individual maximums for bodily injury payments for each person, for a group of people, and for total property damage.
  • Single Limit: This method splits a lump sum across all of the injured parties and all of the damaged property.

What Does Liability Insurance Pay For?

We’ve talked about the two major categories of damages included in your liability insurance, but what does “bodily injury” and “property damage” cover specifically? Does it cover trips to the Collision Center or just basic repairs? The following is provided by the driver at fault and awarded to the victim of the accident:

Bodily Injury Coverage

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

Property Damage Coverage

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

Finance Your Next Vehicle with Lexus of Chattanooga

We’ve answered the question “how does liability insurance work,” but if you have additional questions, we’re here for you at Lexus of Chattanooga. Contact us with any questions about insurance, to learn what good mileage on a used car is, or other automotive issues you might have. We’re located in Chattanooga and we’d be happy to help.

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