What Does Liability Insurance Cover?

2020 Mitsubishi Outlander Sport on the road


What does liability insurance cover? It’s a common question we hear at the Bell Road Mitsubishi finance center and for good reason. It’s something that many Glendale drivers have heard of, or been asked to have when they purchase a vehicle, but what is it? That is why we’re here to discuss the auto liability insurance definition and more in this helpful guide. 

Auto liability insurance is a two-fold plan that covers bodily injury and property damage. This type of coverage is required by law in most states and while they are separate coverages, they’re legally required so it’s important you know how much you need. But what does liability coverage pay for? Liability insurance takes care of expenses from injuries to other people or property damage if you are the driver at fault in a collision. Find out more about auto liability insurance definitions and more with Bell Road Mitsubishi, and contact us with any questions that you might still have. 

How Does Liability Insurance Work?

Curious about how does liability insurance work? Overall liability coverage includes both bodily injury and property damage coverage. However, each category can have its own set limits. States generally have their own minimum limits, but you have the opportunity to set your own coverage limits as long as they at least meet your state’s minimum. What does liability coverage pay for? 

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

Keep in mind that this coverage is for the victim of the accident. It is not designed to cover the driver who is at fault in the collision. 

How to Set Up Liability Coverage Limits

When working to set up your insurance plan in the Peoria area, it is important to work with your insurance agent to set up coverage limits that will work for you, while still meeting all legal requirements. You have the option to split the limits or house them as a single limit. Here’s how this works:

  • Opt for a split limit, and you can select individual maximums for bodily injury payments per person, for all people injured, and all property damage.
  • When you choose a single limit, there is no total limit per person. With this option, the lump sum will be divided across all those injured and all property damaged.

Find Out More About What Does Liability Insurance Covers with Bell Road Mitsubishi Today

If you still have any questions about auto liability insurance definition, or what does liability coverage pay for, our team is here to answer all of these questions. You can also browse our selection of car buying tips and insurance information, so that you can make even more choices that will benefit you for years to come on a new or used model from Bell Road Mitsubishi.

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