What Does Liability Insurance Cover?

Man Sitting at Desk Doing Calculations

It’s important to be protected in the case of any accident on the road. Required by most states, driver’s need auto liability insurance that covers injury to people and damage to property. Although they are both legally required, liability insurance ensures that, in the event that you cause an accident on Cerritos streets, expenses from injury and property damage are covered. Learn more about coverage and how liability insurance works with the team at Lexus of Cerritos. Contact us with any questions about insurance for your new car.


How Does Liability Insurance Work

Everyone around Long Beach has different levels of insurance needs, so while bodily injury and property damage are covered by liability insurance, people can set their own limits. The state requires a minimum limit, but it can then be tailored by the type of driving the vehicle sees. So, what does liability insurance cover?

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 reason for this coverage is so the victim of the accident is taken care of, not the driver at fault. Be sure to set proper limits for coverage that match how much you can offer.


Liability Coverage Limits

Discuss coverage limits with a local Torrance insurance agent when creating a plan. Coverage limits can be split or set as a single limit. How does liability coverage work when there’s a limit?

  • When splitting the limit, drivers can choose individual maximums for bodily injury payments per person, for all people injured, and all property damage.
  • When selecting a single limit, a lump sum will be distributed evenly across all injured and all property damaged.

Explore Insurance and Financing Options with Lexus of Cerritos!

Are you still wondering, “what does liability insurance cover?” When it’s time to purchase a new vehicle, you should be aware of all your financing and insurance options. Talk to the talented team in our Finance Center for assistance. We can help with applying for financing, selling or trading your vehicle, and discussing insurance options.


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