What Does Liability Insurance Cover?

Car-buying paperwork


Liability auto insurance is required in most states as a form of insurance that covers bodily insurance and property damage. There’s a wide range of coverage, including medical bills in case of injury, vehicle damage, or property damage if you are at fault. So, how does liability insurance work? The finance team at Volkswagen of Salem County has all the details, including the auto liability insurance definition, coverage, limits, and more. 

How Does Liability Insurance Work?

What does liability insurance pay for? As discussed above, liability coverage is a two-fold form of insurance, covering both bodily injury and property damage. There are minimum limits set by the state, but you can also set your own limits based on what you’re comfortable with. Keep in mind that the coverage is intended for the victim of an accident, not the driver at fault. Regardless of what limits you set, 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

Liability Coverage Limits

One thing you’ll need to discuss with your insurance agent in Vineland is coverage limits. You can either house your liability coverage limit as a single limit, or split it. Here’s how it works:

  • A split limit will allow you to select individual maximums for bodily injury payments per person, for all people injured, and all property damage.
  • With a single limit, there is no total limit per person, the lump sum will simply be spread across all those injured and all property damaged.

Learn More About Insurance Coverage at Volkswagen of Salem County

If you have any questions about liability insurance in Millville and beyond, don’t hesitate to contact our office! You can also stop by our finance center to talk to an expert in person—we’re conveniently located in the Washington Township area. And if you’re in the market for a new ride, be sure to check out our inventory of new and pre-owned vehicles!

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