What does "auto liability insurance" cover?

Auto liability insurance is designed to protect the insured against claims resulting from bodily injury and property damage that they are found liable for in an auto accident. When someone is involved in a collision and is deemed responsible, their liability insurance will cover the costs associated with medical expenses for the injured party and repair or replacement costs for damaged property, including other vehicles or structures.

The focus of auto liability insurance is to handle the financial repercussions of being at fault in an accident, which is essential for ensuring that the injured parties receive necessary compensation without placing the financial burden solely on the person responsible. This form of insurance does not cover theft of the vehicle, accidental damage to the vehicle itself, or expenses related to renting a vehicle; such situations typically require different types of insurance coverage, such as comprehensive or collision coverage. This distinction clarifies why the option regarding protection against claims for bodily injury and property damage accurately reflects the scope of auto liability insurance.