How is auto liability insurance typically structured?

Auto liability insurance is typically structured to include two primary components: bodily injury liability and property damage liability. Bodily injury liability coverage pays for medical expenses and related costs if you are at fault in an accident that injures another person. Property damage liability coverage, on the other hand, covers the costs associated with damage to someone else's property resulting from an accident for which you are responsible.

This dual structure is designed to provide comprehensive protection to the policyholder and ensure that they can cover the financial repercussions that may arise from an accident. It is important for drivers to carry adequate liability insurance, as it helps to safeguard their finances in case they cause harm to others.

Other options present different aspects of auto insurance that are not part of how liability insurance is structured. A wrongly implies that liability insurance only covers property damage, ignoring bodily injury. The third option suggests that liability insurance combines several types of vehicle insurance, which doesn't correctly represent the specific focus of liability coverage. The last option incorrectly states that liability insurance excludes coverage for uninsured motorists, which is typically a separate coverage rather than part of liability insurance itself.