What Does Liability Insurance Cover?

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Most drivers realize that liability insurance is required by law in most states, including Missouri. However, many would be at a loss if they tried to answer the question, “What does liability insurance cover?” In spite of the mystery surrounding this requirement, the answer is actually pretty simple: Liability insurance covers the expenses incurred by other people, as a result of injury or property damage. So, if you cause an accident near St Peters or Webster, your liability insurance company will foot the bill.

What Does Liability Coverage Pay For?

Looking for an easy auto liability insurance definition? In the simplest terms, liability insurance is financial protection for the victim or victims of an accident. However, as far as most drivers are concerned, the more crucial question just might be, What does liability coverage pay for? Although no two plans are exactly alike, most liability insurance will pay out for each of the following:

  • Bodily Injury: Your liability insurance will cover medical and hospital bills, long-term nursing care, funeral expenses, rehabilitative services, lost earnings, and general pain and suffering which occurred as a result of the accident.
  • Property Damage: Liability coverage will also pay the cost of vehicle repairs, parts replacements, vehicle damage, and any medical expenses incurred by a pet. It will also pay out for general property damage, if some house, business, or personal property was wrecked in the collision.

Don’t forget: Liability insurance covers damages incurred by the victim or victims of an accident. If you want to make sure you can replace your own vehicle or pay for your own medical expenses, you’ll need comprehensive insurance and/or GAP insurance.

How Does Liability Insurance Work?

Liability insurance functions in different ways depending on what sort of plan you opt for, and how much coverage you decide to purchase. The most important thing to understand, before choosing your plan, is the difference between split and single limits. Here, we’ve broken down the basics:

  • Split limits allow a greater degree of customization. You can set individual payout limits per person, as well as a limit for all parties injured. You can also set yet another limit for property damage payouts.
  • With single limit plans, your payout will be released as one lump sum, to be spread out evenly between all the parties and properties that have been injured or damaged.

Get Finance and Insurance Tips from Suntrup Volkswagen!

Suntrup Volkswagen knows that the process of financing a vehicle can be a difficult one. However, it doesn’t have to be that way. When you work with the experts on our finance team, we’ll walk you through the entire process and provide you with all of our most useful tips and tricks. Our dealership is just a short drive from St Louis, so why not apply for financing today?

Suntrup Volkswagen 38.5208643, -90.3438767.