What Does Liability Insurance Cover?

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When you want to drive through Nashua and Portsmouth in a new Porsche, you have to have liability insurance. But what does liability insurance cover and why is it so important for your daily drives? The auto liability insurance definition states that it must cover both bodily injury and property damage in the case of a collision. This includes everything from injury expenses to property payments if you’re found to be at fault for an accident. So what does liability coverage pay for? Learn more with our finance team below.

How Does Liability Insurance Work?

Liability insurance must cover injuries and damages in case of an accident in Manchester. However, the limits of that coverage might vary from plan to plan. The state sets certain minimums that you must legally meet, but you can also get additional coverage to broaden your protection.

That being said, it’s important to strike the right balance to ensure that you get the coverage you need without breaking your budget! After all, the costs of things like liability insurance, GAP insurance, and more can really build up.

In addition to different minimums and maximums, you can also choose to split your limits or house them as a single limit. What does this mean? Learn more below:

    • Split Limits: This method allows you to select individual maximums for bodily injury payments for each person, for a group of people, and for total property damage.
  • Single Limit: This method splits a lump sum across all of the injured parties and all of the damaged property.

What Does Liability Insurance Pay For?

Now that you know about the damages covered by your liability insurance, it’s time to learn the answer to: what does “bodily injury” and “property damage” cover specifically? Does it cover trips to the Collision Center or just basic repairs? Learn more about what liability insurance pays for below:

Bodily Injury Coverage

  • Medical and hospital bills
  • Long-term nursing care that may be needed
  • Physical rehabilitation
  • Pain and suffering
  • Lost earnings
  • Funeral expenses in the event of a fatal accident

Property Damage Coverage

  • Vehicle damage
  • Repair expenses
  • Necessary part replacement
  • General property damage (house, personal property, etc.)
  • Pets

Finance Your Next Vehicle with Porsche Stratham

Are you still wondering, “how does liability insurance work?” If you have additional questions, our team at Porsche Stratham is always ready to help. Contact us with any questions about insurance or other automotive issues you might have.


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