What is Liability Insurance?

The auto liability insurance definition is: insurance that provides bodily injury and property damage coverage to the other driver if you have an accident. If you’re driving in Queens and you accidentally rear-end another driver, how does liability insurance work? What does liability coverage pay for? These are important questions to ask before spending money on insurance. Let Major World explain the auto liability insurance definition.

How Does Liability Insurance Work?

Auto accidents are expensive, and all drivers should be insured so they can take responsibility in case of an accident. How does liability insurance work, and what does liability coverage pay for? It pays for any injuries or damage caused by the driver who’s at fault in an accident. If you’re driving an inexpensive used car in Brooklyn, liability insurance is the minimum insurance you might carry. It’s one of the things that make it less expensive to drive a used car. If you finance your car you might be required to carry more insurance.

What Does Liability Insurance Cover?

“Bodily injury” and “property damage” are vague terms. If you’re wondering exactly what does liability insurance cover if you have an accident in Bronx, take a look:

What Does Liability Coverage Pay For? 

  • Bodily Injury
    • Medical and hospital bills
    • Long-term nursing care if needed
    • Funeral expenses in the event of a fatal accident
    • Rehab
    • Pain and suffering
    • Lost earnings
  • Property Damage
    • Repair expenses
    • Replacement parts
    • Vehicle damage
    • General property damage (house, personal property, etc.)
    • Pets

Liability Coverage Limits

Part of the auto liability insurance definition includes limits of what does liability insurance cover. This will depend on the insurance you buy, so make sure you know if you’re getting a split limit or single limit so you’ll know what your liability insurance covers:

  • Split limit — you select individual maximums for bodily injury payments per person, for all people injured, and for all property damage.
  • Single limit — there is no total limit per person, so that the lump sum is spread across all those injured and all property damaged.

Find Out More About How Liability Insurance Works

The finance center at Major World is here to answer your questions like, “What does liability coverage pay for?” and “How does liability insurance work?” Contact us for answers to all your auto insurance questions. Whether you need more insurance info or are curious if you can lease a used car, we can help.

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