How Does Liability Insurance Work

Car key on insurance paperwork 

Many drivers around Hampton have asked, "How does liability insurance work?" and "What does liability coverage pay for?" Most states require all drivers to have auto liability insurance on their vehicle, which provides bodily injury and property damage. 

That means your insurance covers the costs of injuries to other people if there's an accident or property damage and you are at fault. So, what else does liability coverage pay for? Audi Hampton has the answers in this helpful guide, and if you have questions, contact us.

What Does Liability Coverage Pay For?

Now that you know the auto liability insurance definition, let's answer the question, "What does the liability insurance pay for?" While both bodily injury and property damage are covered as part of your liability insurance, each part of your coverage has its own set limits. 

Your state typically sets minimum coverage limits, but you can have your own limitations depending on your specific needs and comfort level when driving around Williamsburg. Liability insurance covers the following:

Bodily Injury

  • Rehab
  • Lost earnings
  • Medical and hospital bills
  • Any long-term nursing care required
  • Funeral expenses in the event of a fatal accident
  • Pain and suffering

Property Damage

  • General property damage (house, personal property, etc.)
  • Damage to your new or used Audi
  • Repair costs
  • Necessary part replacement
  • Any injuries to your pets 

It's crucial to remember that the main parts of liability coverage cover the accident's victim(s) and not the driver that caused the accident.

Liability Coverage Insurance Limits

When discussing, "What does liability coverage pay for?" with your insurance agent in Virginia Beach, you should discuss liability coverage limits. Limits can either be split or lumped together. For example:

  • With a single limit, there is no per-person limit. The lump-sum is spread across all those injured and all property damaged
  • A split limit allows you to select individual maximums for bodily injury payments per individual, for everyone injured, and all property damage

Learn More About Auto Insurance Coverage at Audi Hampton

Now that you know the auto liability insurance definition, if you have other questions, contact the finance team at Audi Hampton near Norfolk. Purchasing a new or certified pre-owned Audi means you need to review and understand all of your auto insurance options properly. Please don't hesitate to contact us or visit the dealership today!

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