What Does Liability Insurance Cover?

Hands protecting a model car

Auto liability insurance was designed to protect you and fellow drivers, so you can travel through Bloomfield with total peace of mind — but what does liability insurance cover exactly? The auto liability insurance definition is an insurance plan that covers bodily injury and property damage. Because these two categories of damage insurance are required by law, they are typically packaged as one plan. Let’s go through the basics:

How Does Liability Insurance Work?

Your state places certain minimums on your insurance coverage, which means insurance needs to meet the same criteria whether in Farmington Hills or Troy. However, each plan may vary slightly — so it’s a good idea to read the fine print! However, one of the most important factors is that liability insurance covers the victim in case of an accident. Here are the other aspects covered:

Property Damage:

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

Bodily Injury:

  • Funeral expenses in the event of a fatal accident
  • Rehab
  • Pain and suffering
  • Lost earnings
  • Medical and hospital bills
  • Any long-term nursing care that may be needed
Car Keys and Insurance Documents

Liability Coverage Limits

Liability insurance may be required by law, but you have options when you sign up for your plan. Do you want to split your limits or combine them?

  • Single Limit: This plan has no total limit per person. The lump sum is spread across all injured persons or damaged property.
  • Split Limit: A split limit sub-divides your individual maximums in three categories: bodily injury payments per person, payments for all people injured, and for any property damage.

Deciding which option can be tricky on your own, so we recommend speaking with our finance department to see which makes the most sense for you. Our experts know that auto financing can be a little confusing, but they can help you every step of the way.

Learn More With Tamaroff Honda

Now you know what does liability coverage pay for and how does it work, but we’re sure you still have questions. Contact us at Southfield for more information and we’d be glad to help. Are you ready to learn more about the auto financing process? Find out if car insurance covers hail damage and can you trade in a financed car.

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Tamaroff Honda
Tamaroff Honda
28585 Telegraph Rd.
Southfield, MI, 48034 United States
(248) 965-1049
Tamaroff Honda 42.497881, -83.2865974.