What Does Liability Insurance Cover?

Liability insurance is the bare minimum type of auto insurance that’s usually required to have, but what exactly does it cover? The technical auto liability insurance definition is insurance that gives you protection in the event that you cause an accident near Sharon. This can include damage to another driver’s car, damage to the driver, or even property damage. Learn how liability insurance works in more detail with the finance center at Shenango Honda!

What Does Liability Coverage Pay For?

So, how does liability insurance work? Basically, liability insurance falls into two different categories of coverage: physical injury or property damage. Each category has certain limits on what’s covered under liability insurance.

Here are some examples of what liability coverage pays for: 

Physical Injury

• Rehabilitation 
• Pain and suffering
• Lost earnings due to injury 
• Medical and hospital bills
• Any long-term nursing care
• Funeral expenses

Property Damage

• Vehicle damage
• General property damage (house, personal property, etc.)
• Pet injury
• Repair expenses
• Necessary part or parts replacement

The most important thing for Hubbard drivers to remember is that liability insurance coverage pays for the victim of the accident and not the driver who’s at fault. That’s why it’s important to set up limits on your specific policy for what you can actually afford.

Liability Insurance Coverage Limit Definitions

It’s important to know not only what liability insurance covers but what it doesn’t cover. That’s why setting liability insurance coverage limits is important when you set up your policy coverage. 

Limits are either split or set as a single limit. If you’re unfamiliar with what those terms are, then don’t worry! We’ve broken that down for you: 

• Split Limit: Allows you to choose specific maximum amounts for each individual person involved in an accident, including physical injury payments per person and for any and all property damage
• Single Limit: Lets you set a lump sum amount that’s spread across everyone involved who was injured and across any payments for property damage

As you can see, the auto liability insurance definition is simple on paper, but there’s a little bit more to it that’s important to understand. If you’re still asking yourself, “What does liability insurance cover?”, then visit our dealership online or in person near Grove City!

Ask Us About Liability Coverage in Hermitage!

If you’re looking for a new Honda and want to make sure it’s covered with the bare minimum amount of coverage, then contact Shenango Honda. We’ll help you find a new Honda that you’ll love to drive and help you keep it protected, no matter what happens on the road!