What Does Liability Insurance Cover?

Auto liability insurance is required by law in most states, including here in California. It is a two-fold plan that covers bodily injury and property damage should you get into an accident on Irvine-area roads. According to the auto liability insurance definition, this plan will cover expenses from injuries to other people or property damage if you are at fault. So, what does liability coverage pay for? This guide from the finance team at Weir Canyon Honda will provide you with all of the details.

How Does Liability Insurance Work?

Both bodily injury and property damage fall into your overall liability coverage, but each can have its own set limits. While legally you must meet the minimum limits set by the state, you can 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

The key factor of liability insurance is that this coverage is for the victim of the accident, not the driver at fault. When securing liability insurance, it is important that you set limits on your coverage that align with how much you’re able to offer.

Liability Coverage Limits

You should discuss liability insurance limits with your Yorba Linda-area agent before signing on the dotted line. The limits can either be split or combined, whichever works best for you. Here are the details on liability coverage limits:

• A split limit will allow you to select individual maximums for bodily injury payments per person, for all people injured, and all property damage
• A single limit does not include a total limit per person, as the lump sum will simply be spread across all those injured and all property damaged

Learn More About Your Auto Insurance Options at Weir Canyon Honda

Whether you buy a new Honda or a used vehicle, it is important to understand all of your financing and auto insurance options. The finance specialists at Weir Canyon Honda will be happy to help you learn more about liability insurance, as well as other options such as GAP insurance. If you have any questions, contact us online, or better yet, stop by our dealership in Anaheim and speak to one of our finance experts in person.