What is liability coverage in auto insurance meant to provide?

Liability coverage in auto insurance is designed to provide financial protection to the insured in the event that they are responsible for causing injury or damage to another person or their property while operating their vehicle. This coverage typically includes two main components: bodily injury liability, which covers the medical expenses and lost wages of individuals injured in an accident for which the insured is at fault, and property damage liability, which covers the cost of repairs or replacement of the other party’s property.

This type of coverage is crucial because it helps protect the policyholder's assets from legal claims arising from accidents they may cause. If the insured is found liable, the insurance can cover the defense costs and any settlements or judgments up to the limits of the policy, ensuring that the insured does not have to pay out of pocket for potentially large amounts of damages.

The other options mentioned do not accurately reflect the scope of liability coverage. Protection for the insured's vehicle relates to collision and comprehensive coverage, while theft coverage pertains specifically to policies that address the loss of the vehicle itself. Insurance against natural disasters typically falls under a separate type of coverage and is not specific to auto insurance liability. Therefore, the essence of liability coverage is about addressing the financial implications of actions that result in harm to others, making