What Does Liability Insurance Cover?

Red Car Rear Ended by Blue CarAuto liability insurance covers bodily injury and property damage, encompassing the expenses related to auto accidents when you, the driver, are at fault — either right here in Mt. Prospect or across the country. This kind of insurance is required by law in most states, so it’s important to understand the ins and outs of this insurance plan, including what liability coverage pays for and what it doesn’t.

How Does Liability Insurance Work?

While both bodily injury and property damage fall into your overall liability coverage, each can have their own set limits. Though there are minimum limits set by the state, you can set your own limits based on how much you are comfortable with driving around Chicago or Des Plaines. Liability insurance covers the following:

Bodily injury and property damage are part of your overall liability coverage. Each has their own minimum set of limits decided by your state, though you can set your own depending on your comfort levels. Should you get into an accident in your new Volkswagen, liability insurance covers:

  • 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

This coverage is for the victim of the accident, not the at-fault driver.

Liability Coverage Limits

Setting coverage limits is important, because you don’t want to max out your budget. Discuss your coverage limits with your Chicago agent while setting up your insurance plan, and decide between a split limit or single limit:

  • A split limit lets you select individual maximums for bodily injury payments per person, for all people injured, and also includes all property damage
  • A single limit does not alot a total limit per person, but rather spreads a lump sum across all injured parties and property damaged

Learn More About Insurance Coverage at The Autobarn Volkswagen of Mt. Prospect

Your new or used vehicle is an investment, and protecting it is important. Arm yourself with the knowledge you need to make smart decisions for your Des Plaines lifestyle and habits. For additional guidance, contact our friendly finance team.

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