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What Does Liability Insurance Cover?

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Auto liability insurance is dual protection plan that is required by law in most states. So, how does liability insurance work? What does liability coverage pay for? If you get into a car accident and are at fault for someone else’s bodily injuries or property damage, liability insurance will cover those expenses. Take a closer look at the auto liability insurance definition below with DeYarman Automotive Group, and don’t hesitate to contact us with any questions. 



What Does Liability Coverage Pay For?

What does liability insurance cover? Liability insurance provides the victim of the accident with compensation in two main categories: bodily injury and property damage. Here’s a breakdown of what that all entails:

Property Damage

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

Bodily Injury

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

Depending on what you’re able to offer, you can choose your liability coverage limits (the maximum amount of dollars your insurance will pay on your behalf). However, there are minimum liability coverage amounts that vary from state to state. We’ll touch on liability coverage limits in further detail below.

Liability Coverage Limits

While setting up your liability coverage plan with your agent, you’ll be able to choose between a single limit or split limits. Here’s more on that: 

  • A single limit consists of a lump sum that is distributed across all injured parties and all property damaged. If the accident resulted in more property damage than bodily injury—or vice versa— the payment can be divided up accordingly.
  • Split limits allow you to divide your liability coverage into three maximum dollar amounts for the bodily injury per person, bodily injury per accident, and property damage per accident. 

Explore Your Auto Insurance Options at DeYarman Automotive Group

Now that you have an overview of the auto liability insurance definition, don’t hesitate to start a conversation with us to learn more about your options. Our finance experts are dedicated to helping you get the right coverage for your needs, so drop by or contact us today! Next, explore the importance of comprehensive auto insurance.


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