What Does Liability Insurance Cover?

Couple walking to a Honda Accord


If you have brought a new car or used vehicle home to Union, insurance coverage is likely a top concern. For many South Plainfield drivers, understanding how car insurance works can be a bit overwhelming and leads to a lot of questions like:

  • What does liability insurance cover?
  • How does liability insurance work?
  • What is the auto liability insurance definition?
  • What does liability coverage pay for?

Different coverage requirements and bundles can be confusing to wrap your head around. So, what does liability insurance cover? Liability insurance covers injuries to others and property damage that occurs as a result of accidents for which you are at fault. This is crucial coverage for all Kenilworth drivers. Find the answer to, “How does liability insurance work?,” and more in our guide below.

How Does Liability Insurance Work?

Comprehending the auto liability insurance definition is not as complicated as it sounds. Liability insurance covers both bodily injury and property damage, but each has a separate limit. Every state sets a minimum amount of coverage but you can also set your own limit. Liability insurance coverage includes:

Property Damage:

  • Damage done to vehicles
  • Damage to a house, personal property, etc.
  • Pets
  • Repair costs
  • Replacement parts

Bodily Injury:

  • Reasonable funeral expenses if necessary
  • Rehabilitation and therapy
  • Pain and suffering
  • Lost wages
  • Medical bills
  • Long-term care

What Does Liability Coverage Pay for?

When setting coverage limits, you can opt for single limit or split limit coverage. What is the difference between single limit and split limit?

  • Single Limit: With a single limit liability insurance plan, there is no total limit per individual. In the event of an accident, a lump sum will be allocated to all of the injured parties and individuals who suffered property damage.
  • Split Limit: With split limit coverage, you will have the option to set individual maximums for bodily injury payments per person, for all people injured, and for property damage. Consult with an insurance expert to determine which form of coverage will best suit you.

Learn More About Insurance in North Plainfield

If you are still wondering about the auto liability insurance definition or asking, “What does liability coverage pay for?,” you’re not alone! Contact us today to find the answers to these questions as well as more highlighting features such as GAP insurance. Our friendly staff can guide you through all of your insurance needs to make sure you are properly covered.

More From VIP Honda

  • 2021 Honda Pilot Cargo Space

    The 2021 Honda Pilot is the upcoming Honda vehicle that is certain to make all the Union drivers’ heads turn. With extra leg room and other features, you’ll be able to bring all of your passengers with room to spare. Take a look inside the Honda Pilot cargo space with VIP Honda and then feel free…

  • Honda AWD

    All-wheel drive systems are designed to actively engage all four wheels for maximum driving performance, but the Honda AWD technology takes this experience up a notch, giving you extra traction and control. Learn more about how Honda AWD works and how it can rev up your North Plainfield commute! Contact Us Honda Tech Tutor How Does…

  • How Much Can a Honda CR-V Tow?

    Year after year, the Honda CR-V separates itself from the competition with is powerful performance, fantastic fuel economy, and terrific features – but just how much can a Honda CR-V tow? If you’ve been wondering if the Honda CR-V towing capacity can keep up with your busy schedule in Union, you’ll be happy to know…

Saved Vehicles

SAVED VEHICLES

You don't have any saved vehicles!

Look for this link on your favorites:

Save

Once you've saved some vehicles, you can view them here at any time.

Contact Us

908-753-1500

Call Now

700 US-22 East • North Plainfield, NJ 07060

Get Directions

Today's Hours:

Service: Closed

Parts: Closed

VIP Honda 40.6267469, -74.4365914.