What Does Liability Insurance Cover?

Woman at Scene of Car Accident

Auto liability insurance is a requirement in most states, while trucking liability insurance for truckers is federally mandated for new and pre-owned trucks. This type of insurance pays for bodily injury and property damage suffered by another party as a result of an accident for which you’re at fault. What does liability insurance cover, exactly? Lynch Truck Center can answer! Read on to learn more about liability insurance and how it applies to trucks.

How Does Liability Insurance Work?

What does liability coverage pay for? This type of insurance is a two-fold coverage, so while physical injury and property damage are considered separate, they’re linked under the umbrella of liability coverage. Auto and trucking liability insurance cover expenses incurred by any of the following scenarios:

  • Bodily Injury Liability 
    • Medical bills
    • Any long-term nursing care that may be required
    • Funeral expenses in the event of a death
    • Rehab
    • Pain and suffering
    • Lost wages and earnings
  • Property Damage Liability 
    • Car repair bills
    • Necessary parts replacement
    • Car damage
    • General property damage (house, personal property, etc.)
    • Pets

It’s important to note that this form of car insurance is intended for the victim of an accident — and the driver who caused it. 
2019 ram chassis cabs at a job site

What Are the Liability Coverage Limits?

For passenger vehicles, liability limits are mandated by the state in which the driver resides. In Wisconsin, a policy must meet the following requirements:

  • $25,000 for injury or death of one person
  • $50,000 for injury or death of two or more people
  • $10,000 for property damage

For truckers, federally required liability limits are determined by the weight of the truck and the cargo it hauls. Here’s how that works:

  • If a truck hauls non-hazardous materials, such as lumber, and weights 10,001+ pounds, the liability limit is $750,000. If an accident results in $500,000 in damages on a public highway around Northern Chicago, the government would draw from the liability policy to pay for repairs.
  • For trucks hauling hazardous materials, such as radioactive materials or gases, the liability limit is much higher — $5 million to be exact.

In some cases, you might only be able to access liability coverage through a commercial auto insurance policy. You should also consider non-required insurance policies, like gap insurance.

Get More Information About Liability Insurance at Lynch Truck Center

Whether you’re researching to ensure you have the right amount of coverage, or you’re exploring your liability coverage options for your next purchase, Lynch Truck Center is your reliable source for information and a wide selection of trucks. If you have questions about the auto liability insurance definition or coverage options like collision and comprehensive insurance, don’t hesitate to contact us or visit us near Racine and Milwaukee.

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