What Does Liability Insurance Cover?

Accidents can happen anytime to even the best of drivers. As a result, most states require drivers to carry a liability insurance policy.


The basic auto liability insurance definition of what your plan provides is, coverage for bodily injuries and property damage in an accident where you are at fault. If you are involved in an accident in the Portland area, our guide below will help you discover what your policy will cover.

How Does Liability Insurance Work?

The state mandates a minimum amount of coverage each policy provides. However, you may increase those limits which can be wise if you spend a lot of free time on the road or have a long commute from Gresham or Beaverton, and beyond. You still may be asking, what does liability coverage pay for? Your plan will cover a variety of things which may include:

Bodily Injury:

  • Medical bills
  • Long-term medical care costs
  • Reasonable funeral expenses in the event of a fatality
  • Rehabilitation
  • Lost wages
  • Pain and suffering

Property Damage:

  • Vehicle damage
  • Repair costs
  • Cost of replacement parts
  • General property damage
  • Pets

It can be difficult to wrap your head around what your liability insurance will cover and any coverage limits your plan has. For guidance on specific questions on what your liability coverage pays for, contact Dick Hannah RAM directly.

Liability Coverage Limits

Your local Portland insurance agent is the perfect advocate to help you review your options and choose the best coverage plan for you. Your policy limits can either be consolidated into a single limit or split, the difference is:

  • With a single coverage limit, the lump sum of your coverage is distributed amongst all injured parties and property owners who incurred damage.
  • With a split limit you have the flexibility to decide maximums for bodily injury payments per person, for all people injured, and for all property damage

Learn More About Liability Insurance At Dick Hannah RAM Dealer Group

As you take time to consider your next vehicle purchase it is natural to wonder how much will my payment be, or what does liability insurance pay for? Our finance team is here to help you understand all your options, including the value of your potential trade-in, answer any insurance questions, and can even help you apply for financing. Reach out to us today for more information about insurance, how to buy a new car, or where to go for the best take out in Vancouver. You can also schedule an appointment at our dealership near Hillsboro!

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