What Does Liability Insurance Cover?

car insurance paperwork with car key

Kentucky, like most states, requires all drivers to carry liability insurance. To comply with state law, drivers must have liability coverage for both bodily injury and property damage. This protects you, your passengers, and everyone else on Richmond and Winchester roads and minimizes your out-of-pocket expenses for property damage and accident injuries. But exactly what does liability coverage pay for and how does it work? Our finance team at Short Redmond SuperStore breaks it all down for you below.



What Does Liability Coverage Pay For?

You can set your own coverage limits, as long as they meet the state-mandated minimums. In Kentucky, the minimums are as follows:

  • Bodily Injury Liability: $25,000 per person and $50,000 per accident
  • Property Damage Liability: $10,000 per accident
  • Uninsured Motorist Coverage: $25,000 per person and $50,000 per accident
  • Personal Injury Protection: $10,000 per accident

While highly recommended, Uninsured Motorist and Personal Injury Protection are not required and coverage can be declined in writing. If you do choose to carry both or either of them, however, the dollar amounts above are the state-mandated minimums.

So, just what does liability coverage pay for? Consult your policy for an explanation of what your plan covers and excludes. In general, the auto liability insurance definition includes these types of expenses, which are paid to the accident victim and not the at-fault driver:

Bodily Injury

  • Long-term nursing care
  • Lost wages
  • Medical and hospital bills
  • Pain and suffering
  • Rehabilitation

Property Damage

  • General damage to property (house, personal property, etc.)
  • Parts replacements
  • Repair costs
  • Vehicle damage

What are Liability Coverage Limits?

As long as they satisfy the state’s minimums, your liability coverage limits can be customized to meet your financial needs. Limits can be split, which means you choose individual maximum coverages for bodily injury payments per person and per accident and for property damage as a whole. Or, you can opt for a single limit, wherein one lump coverage sum is split among all injury and property damage costs.

How Does Liability Insurance Work?

Liability insurance works like any other type of insurance. You pay premiums in exchange for coverage, and if you are involved in an accident for which you are at fault, victims file claims with your insurer.

Get Answers to Your Liability Insurance Questions at Short Redmond SuperStore

We’ve answered some common questions here: What does liability coverage pay for? How does liability insurance work? If you still have questions, don’t hesitate to reach out to a member of our team. We are more than happy to discuss insurance options and requirements and introduce you to your next vehicle in the Danville area!


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