While driving in the Elgin area can give you a lot of freedom and flexibility to get to places where you need to be, one part of being a driver is being prepared for incidents where you are at fault. Accidents are more likely to happen during the winters in the Chicagoland area, so even if you are constantly driving safely in extremely cold weather, unfortunate things may still occur.

This is where auto liability insurance comes in handy as its definition simply puts it as a two-fold plan that covers bodily injury and property damage. Liability insurance is required by law in most states. So what does liability coverage pay for and how does it work when you are the guilty party? Our finance experts at Elgin CDJR will walk you through the details below.

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How Does Liability Insurance Work?

South Elgin drivers should familiarize themselves with how liability insurance works, so some of their worries and stress can lessen if they, unfortunately, caused damage to the victim of the accident. Though auto liability insurance covers both bodily injury and property damage, each category can have its individual limits. Find out what are the minimum limits set in Illinois and then decide on your personal limits based on your financial situation. To answer one of the most commonly asked questions "What does liability insurance cover?" see below:

Bodily Injury

  • Medical & Hospital Bills
  • Necessary, Long-term Nursing Care
  • Funeral Expenses in the Case of a Fatal Accident
  • Rehab
  • Pain & Suffering
  • Lost Earnings

Property Damage

  • Repair Expenses
  • Necessary Part Replacements
  • Vehicle Damage
  • General Property Damage (for example house or personal property)
  • Pets

What Are The Liability Coverage Limits?

One important thing you should do when setting up your plan in Streamwood is to discuss coverage limits. You can split the limits or have each limit be housed as a single limit. Take a look at how it works: 

  • Split limit - Choose individual maximums for bodily injury payments per person, for all people injured, and all property damage. 
  • Single limit - There is no total limit per person, so the whole coverage will be divided among the injured people and damaged property. 

Learn More About Auto Insurance at Elgin CDJR

Now that you know how liability insurance works and what liability coverage pays for, learn more regarding auto insurance from the finance team at Elgin CDJR. Whether you are buying a new or used vehicle for your Bartlett commute, you will need to fully understand the financing as well as auto insurance options. Feel free to reach out to us with any questions.