What does liability coverage in auto insurance protect against?

Liability coverage in auto insurance is designed to protect you in the event that you cause an accident that results in damages or injuries to others. This type of coverage typically includes two main components: bodily injury liability, which covers medical expenses and lost wages for the other party if they are injured in the accident you caused, and property damage liability, which covers the repair or replacement costs for another person’s vehicle or property that you damage.

This protection is critical for drivers, as it helps ensure that they are financially responsible for the harm they may inadvertently cause during an accident. By having liability coverage, you can avoid steep out-of-pocket expenses that would arise if you were found liable for damages or injuries in an accident.

Other options provided do not accurately represent the purpose of liability coverage. For example, covering damages to your own vehicle relates to collision or comprehensive coverage, theft-related losses pertain to comprehensive coverage, and personal injury claims are typically covered under different types of insurance, such as medical payments or personal injury protection.