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How Does Liability Insurance Work?

2020 Mazda CX-5 Signature


Insurance is an important part of car ownership in North Wales, but navigating your options can feel overwhelming at times. How does liability insurance work, and why do you need it? Auto liability insurance is a form of insurance that covers both bodily injury and property damage in the case that you are at fault. While the auto liability insurance definition may differ slightly from plan to plan, some form of liability insurance is legally required in most states. Let’s take a closer look at what this means for the driver.

What Does Liability Coverage Pay For?

Liability insurance is a two-part plan, and your plan may have different limits for bodily injury and property damage. While the state sets minimum limits that are required to drive in Lansdale, you can also set your own limits to cover even more — depending on what you’re able to offer when you are at fault. Typically, liability insurance will cover 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 (home, personal property, etc.)
  • Pets

Liability Coverage: Split vs. Single

When selecting your plan, you’ll also need to decide on split or single limit coverage. What does this mean?

  • Split: When you choose a split limit, you can customize your coverage level. This allows you to set a maximum for every category individually: bodily injury payments per person, for all people injured, and all property damage.
  • Single: When you choose a single limit, you set a lump sum to be distributed across all injured parties and property damaged. There is no limit per person.

Compare Auto Insurance Coverage Options with North Penn Mazda

If you have any questions about your financing and insurance options in Chalfont, feel free to contact us at North Penn Mazda. Our team is ready to walk you through the process, so you can find a plan that suits your wants and needs. You can also visit our dealership in Colmar to peruse our inventory and chat with our finance experts in person!

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