What Does Liability Insurance Cover?

A legal requirement in many provinces and territories, auto liability insurance covers two things for Niagara drivers: bodily injury and property damage. If you are at fault for injuring someone else or damaging their property, liability insurance will cover them. There’s a bit more to the questions of “what does liability insurance cover?” and “how does liability insurance work?” than that, however. Read on for a full auto liability insurance definition, and then, reach out to the finance experts at Performance Mercedes-Benz.

How Does Liability Insurance Work?

How does liability insurance work, and how does it impact your Niagara-on-the-Lake drive? Both bodily injury and property damage will fall under your overall liability coverage, but will have set limits on each. There are minimum limits set by the province or territory, and you can adjust your limits accordingly based on what you feel is necessary. And now, the answer to “what does liability insurance pay for?”:

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

You should know that this coverage covers the victim of the accident and not the at-fault driver. It’s also important that you set the right limit on your liability coverage that aligns with how much in premiums you can pay.

Liability Coverage Limits

When you get your plan worked out between you and your Pelham insurance agent, you’ll need to look into your coverage limits. You can either split the limit between the two categories, or put it all under a single limit. Here are some more facts about the auto liability insurance definition:

• A split limit lets you select individual maximums for bodily injury payments per person, for everyone who is injured, and all property damage.
• If you pick the single limit, there’s no total limit per person; rather, you’ll spread the lump sum across all those injured and all property that gets damaged.

Performance Mercedes-Benz Are Your Insurance Partners

When you purchase a new or used vehicle with Performance Mercedes-Benz, you need to understand your finance and insurance options. If you have any questions about your insurance needs, we’re here to help. Contact us today with any questions, and don’t forget to explore our car buying tips for more helpful guides, including our overview of how to buy a new car.