What is liability coverage in auto insurance?

Liability coverage in auto insurance is designed to protect the policyholder against claims arising from injuries or damages they may cause to other people or their property while operating their vehicle. This type of coverage is essential because, in the event of an accident where the policyholder is at fault, it helps pay for the medical expenses of the injured parties and the costs associated with property damage. By having liability coverage, not only does the driver fulfill legal obligations required by many states, but they also safeguard themselves from significant financial burdens that could result from such incidents.

The other types of coverage mentioned, while important components of auto insurance, serve different purposes. Benefits provided for injuries sustained by the policyholder fall under personal injury protection or medical payments coverage. Coverage for the repair of the policyholder's vehicle is typically referred to as collision coverage. Finally, protection against theft of the insured vehicle generally falls under comprehensive coverage. Each of these types of coverage serves a specific function, but liability coverage is unique in its focus on protecting the policyholder from the consequences of causing harm to others.