What Does Liability Insurance Cover?

insurance coverage 

Auto liability insurance, which is required by law in most states, is a two-fold plan that covers property damage and bodily injury. Liability insurance covers expenses from injuries to other people or property damage if it's determined that you're at fault. What does liability coverage pay for? Chicago Northside Toyota has your guide to what it offers if you're involved in a car accident with your new Toyota vehicle.

Contact Us

How Does Liability Insurance Work?

While property damage and bodily injury fall into the overall liability coverage, each one has their own set limits. Even though there are minimum limits set by the state, you are able to set your own limits based on how much you are comfortable with. Liability insurance 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
    • Necessary part replacement
    • Vehicle damage
    • General property damage (house, personal property, etc.)
    • Pets

Keep in mind that this coverage is for the victim of the accident, and not the driver at fault. You also want to set proper limits on your liability coverage that lines up with how much you can offer.

Liability Coverage Limits

When setting up your plan with your Evanston-area agent, you need to discuss coverage limits. These limits can either be split or housed as a single limit. Here is how that would work:

  • With a split limit, you can select individual maximums for bodily injury payments per person, for everyone injured, and all property damage.
  • If you choose a single limit, there is no total limit per person - the lump sum will be spread across all those injured and all property damaged.

Learn More About Insurance Coverage at Chicago Northside Toyota

When you purchase a new or used Toyota vehicle, it's important to discuss and understand all of the available financing, information about trading in a financed vehicle, and auto insurance coverage options, which includes gap insurance. Make sure you are following state guidelines while selecting the coverage that fits your needs the best. Contact us today with any questions!