What Does Liability Insurance Cover?

Required by law in most states, auto liability insurance is a two-fold plan that covers bodily injury and property damage. Though these are separate, they are both legally required. So, what does liability coverage pay for? Let’s take a closer look at what it offers, should you get into a car accident in your new Cadillac in St. George.

How Does Liability Insurance Work?

First things first: the auto liability insurance definition. Liability insurance is defined as a broad range of coverage that protects you and your business against claims from injury or damage to property. So while both bodily injury and property damage fall into your overall liability coverage, each can have its own set limits. Though there are minimum limits set by the state, you can set your own limits based on how much you are comfortable with. So what does liability coverage pay for? Liability insurance covers the following:

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

Remember the key factor is that this coverage is for the victim of the accident, not the one at fault. It’s also important to set proper limits on your liability coverage that align with how much you’re able to offer.

Liability Coverage Limits

When setting up your plan with your Cedar City agent, you’ll have to discuss coverage limits. Limits can either be split or housed as a single limit. 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, the lump sum will simply be spread across all those injured and all property damaged

Learn More About Insurance Coverage at Stephen Wade Cadillac

There are many things that come with the purchase of a new vehicle from our inventory so liability insurance may not be that high on the list of things you’re paying attention to, but it’s important to keep in mind. That way you’re protected on the Washington and North Las Vegas, NV roads. Contact us for more information or take a look at our Onstar and Connected Services to unlock your vehicle’s full safety potential.