What Does Liability Insurance Cover?

How Does Liability Insurance Work?

Under liability coverage, both bodily injury coverage and property damage coverage have their own set limits. There are minimum limits set by the state, but you can tailor your liability insurance coverage to increase the limits and get better peace on Belen roads. 

What does liability coverage pay for? Remember that this coverage provided by the driver at fault and awarded to the victim of the accident.

• Bodily Injury Coverage
  • Medical and hospital bills
  • Long-term nursing care that may be needed
  • Physical rehabilitation
  • Pain and suffering
  • Lost earnings
  • Funeral expenses in the event of a fatal accident
• Property Damage Coverage
  • Vehicle damage
  • Repair expenses
  • Necessary part replacement
  • General property damage (house, personal property, etc.)
  • Pets

It’s important to have good coverage, but it’s also key to set proper limits on your liability coverage that align with how much you’re able to offer and how much you are able to contribute in your monthly car insurance payments.

How Do Liability Coverage Limits Work?

When setting up your plan with your Belen 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 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

Get More Car Buying Tips at Lexus of Albuquerque

Purchasing a new or used vehicle means properly going over, and understanding, all available financing and auto insurance options. Make sure you’re following state guidelines while also selecting the coverage that’s appropriate for your needs. If you have any questions, visit us in Albuquerque or simply contact us online.