What Does Liability Insurance Cover?

car insurance paperwork with car key

Some Lake Havasu City drivers have asked the finance team at Anderson Auto Group, “How does liability insurance work?” and “What does liability insurance cover?” Most states require drivers to have auto liability insurance on their cars. Liability insurance primarily covers bodily injury and property damage. That means that injuries to other people during an accident you cause, or any property damage around Lake Havasu City, are covered. What else does liability insurance cover? Find out here in this handy guide from Anderson Auto Group, and if you have questions, don’t hesitate to get a hold of us



How Does Liability Insurance Work?

Now that you better understand the auto liability insurance definition, you may wonder, “How does liability insurance work?” Both bodily injury and property damage are covered by liability insurance, but each one has unique designated limits. Your state typically sets the minimum coverage limits, but ultimately any coverage beyond that is based on your comfort level and Lake Havasu City needs. What does liability insurance pay for? Find out below:

Property Damage

  • Repair expenses
  • Damage to your new or pre-owned vehicle
  • Injuries to your pets
  • Necessary part replacement
  • General property damage, such as to your home or personal property

Bodily Injury

  • Medical and hospital bills
  • Lost earnings
  • Rehabilitation
  • Pain and suffering
  • Funeral expenses in the event of a fatal accident
  • Any long-term nursing care required

The main elements in auto liability coverage cover the accident’s victim(s) and not the driver that caused the vehicle accident. 

Liability Coverage Insurance Limits

When discussing “What does liability insurance pay for?” with your insurance agent in Bullhead City, be sure to talk about coverage limits. Your insurance limits can be split or lumped together. Here’s how liability insurance works regarding limits:

  • Single Limit: With a single limit, there is no limit per person. The lump sum limit is spread across all the parties injured and all property damaged
  • Split Limit: A split limit allows you to choose individual maximums for bodily injury payments per person, for everyone injured, along with property damage

Learn More About Auto Insurance at Anderson Auto Group

Feel free to chat with our finance team near Kingman to learn more about the auto liability insurance definition. If you purchase a new car, a used SUV, or a truck, you’ll need insurance as soon as you drive off the lot. We are here to help with all your auto financing needs, so contact us if you have any questions.


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