What Does Liability Insurance Cover?

Liability coverage is required in most states, and this two-fold plan covers both bodily injury and property damage. Though these are separate, legally, both are necessary. What does liability coverage pay for? Tulley BMW of Nashua provides an auto liability insurance definition and explains how this coverage works below. 

How Does Liability Insurance Work?

Looking for an auto liability insurance definition? Bodily injury and property damage are covered by your overall liability coverage, however each type of coverage can have its own set limits. States set minimum limits, but as long as you at least have the minimum amount of coverage, you can set your own limits based on the amount of coverage you are comfortable with. What does liability insurance cover? Tulley BMW of Nashua breaks it down here: 

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

Note: Keep in mind that liability coverage is for the victim of the accident, not the driver at fault. 

Liability Coverage Limits

If you are trying to determine the proper liability coverage limits to meet your needs, these limits can be split or housed as a single limit. Here’s what this means:

• With a split limit, you have the ability to choose individual maximums for bodily injury payments per person, for all people injured, and all property damage.
• If you opt for a single limit, there is no total limit per person. A lump sum will be divided among those who were injured as well as to cover any damaged property. 

Get Your Insurance Questions Answered at Tulley BMW of Nashua

If you are in the market for a new or used vehicle, you may have additional questions about your insurance coverage options. The team at Tulley BMW of Nashua would be more than happy to assist you. Contact us today for more information, or get pre-approved for financing before you start shopping with our online form.