What Does Liability Insurance Cover?

People Going Over Car Insurance

What does liability insurance cover? This required form of insurance covers both bodily injury and property damage under a two-fold plan, which handles expenses if you are at fault in a car accident. Consult this guide from Olathe Dodge Chrysler Jeep Ram for a closer look at the ins and outs of liability insurance and when you would need to use it around Overland Park.


Auto Liability Insurance Definition

Bodily injury and property damage are both covered under the overall liability insurance plan, but each had individual limits. These are set by the state for what’s required, but Gardner drivers can always increase coverage if desired. See below for specifics on what each portion of liability insurance covers.

Bodily Injury

  • Medical and hospital bills
  • Long-term nursing care as needed
  • Rehabilitation
  • Funeral expenses in fatal accidents
  • Pain and suffering
  • Lost earnings

Property Damage

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

In understanding the auto liability insurance definition and what each portion covers, it’s important to keep in mind that this is for the victim of the accident, not the driver at fault. Comprehensive and collision insurance cover your car specifically.

How Does Liability Insurance Work?

How does liability insurance work? You have a sense of what it covers, but setting up your plan with your Springhill agent requires that you understand how coverage limits work. Limits can be split or grouped as a single limit, as explained below.

  • With a single limit under liability insurance, there isn’t a limited amount per person involved in the accident, or a separation of property damage. Rather, a lump sum will be used across the board.
  • A split limit, on the other hand, allows Lenexa-area drivers to choose maximums for bodily injury payments per person, an overall maximum for all people injured, and a maximum for property damage.

Learn More About Insurance Coverage at Olathe Dodge Chrysler Jeep Ram

Do you need further explanation of the auto liability insurance definition, or still asking, “What does liability coverage pay for?” The Finance Center at Olathe Dodge Chrysler Jeep Ram is here to help. Get in touch with any questions, and feel free to consult our car buying tips for additional advice.

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