What Does Liability Insurance Cover?

Are you shopping for a new vehicle and in need of an auto liability insurance definition? How does liability insurance work? This type of coverage is required by law in most states. It is a two-fold plan that covers bodily injury and property damage. While technically separate, legally, both are required. What does liability insurance cover? It is designed to take care of expenses from injuries to other people or property damage if you are the driver at fault in a collision near Seattle. In the guide below from Lexus of Seattle, we go more in-depth with the auto liability insurance definition. 

How Does Liability Insurance Work?

What does liability coverage pay for? Both bodily injury and property damage fall into your overall liability coverage. However, you can set individual limits for each category of coverage. Those limits must at least meet the minimum requirements set by the state. What does liability insurance cover, exactly? 

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

Note: Keep in mind that auto liability coverage is for the victim of the accident, not the driver at fault. 

Liability Coverage Limits

How does liability insurance work when setting limits? When setting up your plan in Bothell or Mill Creek, you’ll have to discuss coverage limits with your insurance agent. You can house limits for bodily injury and property damage coverage together, or your coverage can be split. Here’s how that works:

• A split limit will allow you to select individual maximums for bodily injury payments per person, for all people injured, and for all property damage.
• With a single limit, there is no total limit per person. A lump sum is spread across all those who are injured and all property damaged.

Explore Your Coverage Options with Lexus of Seattle

If you have any questions about liability coverage, do not hesitate to contact the experts at Lexus of Seattle. We are happy to share our finance and insurance tips with you. You can also stop by in person if you prefer!