What Does Liability Insurance Cover?

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Is finding the right auto insurance coverage overwhelming in Port Orchard? Quite a few drivers contact our finance team with insurance questions, asking about their insurance options and, “how does liability insurance work?” When obtaining car insurance there are three primary types of coverage: liability, collision, and comprehensive. 

So, what does liability insurance coverage pay for in Gig Harbor? Liability covers the cost of hospital bills, property damage, and damage to other vehicles if you are found at fault in an accident. Learn more about auto liability insurance definition with this guide from Advantage Nissan. Then, check out our car buying tips to see whether it’s possible to lease a car with bad credit.

How Does Liability Insurance Work?

So, what does liability insurance cover? Depending on the individual states, bodily injury and property damage coverage have limits that are set. Liability insurance plans with higher coverage limits are usually available at a higher monthly premium.

Collision insurance covers any damage from a collision, whether that’s going off the road or hitting an object. Comprehensive car insurance covers non-collision-related damage, including theft, vandalism, fires, and nature-related incidents – like rockslides, weather, and accidents with animals. So how does liability insurance work when combined with collision and comprehensive insurance? Insurance coverage can be split or consolidated into a single limit:

  • Split Limit Policy — Each person pays up to an individual pre-set maximum for bodily injury and property damage payments.
  • Combined Single Limit Policy — Coverage for all components of a claim is limited to one dollar amount. 

What Does Liability Coverage Pay For?

What does liability coverage pay for? Remember that liability insurance covers the victim, and not the Tacoma driver who is at fault. After you find out what’s covered in your state, you can add coverage that fits your needs. Liability insurance typically covers the following:

Bodily Injury Coverage

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

Property Damage Coverage

  • Repair expenses
  • Replacement parts
  • Vehicle damage
  • Home and personal property damage
  • Veterinary expenses

Explore Insurance Options with Advantage Nissan

Have more questions about auto liability insurance definition? Don’t hesitate to contact us at Advantage Nissan about any questions including how does liability insurance work. They’ll explain the difference between liability, collision, and comprehensive. Need financing? Apply for financing online and see if you’re pre-qualified today!

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