What Does Liability Insurance Cover?

A common form of insurance required by law in most states, auto liability insurance works as a plan that covers expenses from both bodily injury and damage to property. Liability insurance effectively works if you’re the fault in a wreck near Albuquerque. So, what does liability coverage cover? And how does liability insurance work? Get all the answers to these questions and more with the finance team at Toyota of Santa Fe.

How Does Liability Insurance Work?

How does liability insurance work? It’s important to remember that liability insurance can have set limits. State law dictates some of these, but you can also set your own limits based on what you’re comfortable with. So, what does liability coverage pay for? According to the auto liability insurance definition, the plan 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
• Parts replacement
• Vehicle damage
• General property damage (house, personal property, etc.)
• Pets

It’s important to mention when answering, “What does liability coverage pay for?”, that, in line with the auto liability insurance definition, the victim of the Rio Rancho accident is the one covered– not the driver at fault.

Liability Coverage Limits

When setting the definition of auto liability insurance in Espanola, coverage limits have to be included. Limits can be either split or combined into a single limit. Here’s the two further defined:

• With a split limit, you are allowed to select individual maximums for property damage and bodily injury payments, either per person or for all injured.
• When you opt for a single limit, a lump sum is spread around all parties injured and any property damage sustained during the accident.

Get Your New Toyota Car Insurance Covered at Toyota of Santa Fe

While no one wants to think about potential car accidents, knowing how liability insurance works saves a lot of grief and worry for the future. When financing your next Toyota purchase, make sure to go over and understand any auto insurance options for your new or used vehicle. If you have any questions about what liability coverage pays for or how it works, contact one of our Santa Fe service members.