What does liability coverage pay for? This is a question that some Pasadena drivers may ask themselves, and liability is something that you should be familiar with. Liability is required by law in most states and provides financial coverage for injuries to other people and other people's property damage. Essentially, liability covers you if you are at fault in an auto accident. Learn all about the in's and out's of liability insurance with the finance department at Bayway Chrysler Dodge Jeep Ram. 

How Does Liability Insurance Work?

As mentioned above, the auto liability insurance definition says that liability provides financial coverage for bodily or property damage to others in a car accident if you are at fault. Even though bodily injury and property damage are covered by liability insurance, these areas can have their own limits for coverage. The minimum limits are set by the state, but you can also determine your own limits with which you are comfortable. Under liability insurance, you are covered for the following areas: 

Bodily Injury

  • Medical fees and hospital bills
  • Nursing care
  • Funeral costs
  • Rehabilitation and long-term care
  • General pain and suffering
  • Any lost earnings from time off of work

Property Damage

  • Repair or replacement expenses
  • Cost of parts
  • Other property damage (house, yard, etc.)
  • Pet injury 

What does liability insurance cover? The biggest takeaway to remember is that liability insurance covers the victim of the accident in which you are at fault, so when you're setting limits for your liability coverage, it's important that the limits are within your level of comfort. 

Limits of Liability Coverage

Now that you know how liability coverage works, you can meet with your Deer Park provider to discuss the limits of your liability coverage. When you discuss your limits, they can either be split or housed as a single limit. Here are how those options work: 

  • Split: A split limit lets you set individual maximums for bodily injury payments per injured person, for all injured people, and all property damage together. 
  • Single: A single limit doesn't have a total limit for each person, and the lump sum is spread out across everyone injured and across all property damage. 

Stay covered on the Deer Park roads and meet with our finance team for help with liability insurance coverage and other helpful car-buying tips

Get Liability Coverage with Bayway Chrysler Dodge Jeep Ram

Now that you know what liability insurance covers, it's time to get the coverage you need to be better protected on the Pasadena roads. Contact us to go over your options, see what you're comfortable with, and discuss any other car-related questions and concerns. Our team can also explain what Comprehensive Insurance covers.