What Does Liability Insurance Cover?

closeup of a car key and a car insurance policy

Most states in the U.S. require car owners to have liability insurance on their cars, but what does liability insurance cover and what’s its significance? In essence, liability insurance provides coverage for any bodily harm or property damage done to another person or vehicle in an accident where you’re at fault. Rates and coverage for liability insurance change with each state. To find out about liability coverage in Sarasota, read our guide below and contact us with your specific questions.

How Does Liability Insurance Work?

In it’s basic coverage plans, liability insurance has limits on what bodily injury and property damage is covered. The state sets the minimum limit for coverage, but you can increase the limit if you want more coverage. What does liability coverage pay for, exactly? Find out below: 

Property Damage: 

  • Replacement parts
  • Repair expenses
  • Vehicle damage
  • General property damage (house, personal property, etc)
  • Pets 

Bodily Injury: 

  • Medical and hospital bills
  • Long-term care (if needed)
  • Rehab
  • Pain and suffering
  • Lost earnings
  • Funeral expenses in the event of a fatal accident

The coverage offered under liability insurance is for the victim of the accident, and not for the driver at fault. It’s important to remember the auto liability insurance definition when picking your insurance in Lakewood Ranch.

Coverage Limitations

As mentioned above, liability insurance has a coverage limit set by the state, but you can choose to increase that limit for more coverage. Coverage limits can be split or consolidated depending on your preference. The difference between split and consolidate coverage is below:

  • Split coverage allows you to select individual limits for bodily injury payments per person or for property damage done. 
  • Consolidated limits covers all injured parties the same, without the option to split up costs based on the individual injury or property damage. 

Review your coverage limit options with your Venice-area insurance agent to determine the plan that’s best for you!

Learn About Coverage at Wilde Lexus Sarasota 

Whether you’re shopping for a new or used vehicle, it’ll need insurance before you can take it on the roads in Bradenton. Before choosing a plan, learn about car insurance options and refer to state guidelines to choose the coverage that’s best for your vehicle and your budget. At Wilde Lexus Sarasota, we’re happy to help you learn more about what coverage options are available to you, including gap insurance, our Lexus performance protection, and our financing options.

Wilde Lexus Sarasota 27.2700033, -82.4713544.