What Does Liability Insurance Cover?

At Jaguar Richfield Certified Pre-Owned & Service, we get a lot of questions about auto insurance. How does liability insurance work? What does liability coverage pay for? The finance team is here to walk you through some of the most common questions and help you determine how the auto liability insurance definition works in your everyday life. Learn all about insurance coverage in Minneapolis and St. Paul area, and get more car-buying tips with us.

How Does Liability Insurance Work?

First, let’s start with auto liability insurance definition. Liability insurance is a two-fold plan that covers both bodily injury and property damage when you are at fault as the driver. This form of insurance is mandatory by law, and there are certain minimums required to drive around Edina. However, you can choose to adjust your limits within a certain range.

Next, what does liability coverage pay for? Liability insurance covers the following:

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

Liability Coverage Limits

We’ve covered what liability coverage pays for, but how does your money translate into benefits for the victim? Not only can you adjust the limits on your liability coverage, but you can also choose between two different types of limitations. Limits can be split or housed as a single limit. What does that mean for you?

• Split Limit: You can set individual maximums for different categories: bodily injury payments per person, for all people injured, and for all property damage.
• Single Limit: You can also establish a lump sum to be spread across all those injured and all property damaged.

Learn More About Insurance Coverage at Jaguar Richfield Certified Pre-Owned & Service

Now that you know how liability insurance works, we’re sure you still have plenty of questions about auto insurance, and the team at Jaguar Richfield Certified Pre-Owned & Service is here to answer everyone. Contact us to learn more about your insurance options, and visit our finance center in Richfield. You can also learn the answers to some other common questions, like “What is GAP insurance?” and “Does car insurance cover theft?”