What primary coverage does auto liability insurance provide?

Auto liability insurance primarily provides coverage for damages the policyholder causes to others in an accident. This includes two key elements: bodily injury liability, which covers medical expenses, lost wages, and other costs incurred by others due to injuries sustained in the accident, and property damage liability, which pays for the repair or replacement of another person's property that is damaged as a result of the policyholder's actions.

This type of insurance is essential as it helps protect the policyholder from potentially significant financial loss resulting from legal claims or lawsuits that can arise when they are found to be at fault for an accident. In many states, including Kansas, having a minimum level of auto liability insurance is a legal requirement, underscoring its importance in ensuring that drivers can cover the costs associated with damages they may cause to others on the road.

Considering the other options, they do not accurately reflect the primary purpose of auto liability insurance. Coverage for only the policyholder's vehicle pertains to comprehensive or collision coverage, not liability insurance. The option regarding only bodily injury costs narrows the scope of liability coverage, while the insurance for rental vehicles generally falls under separate rental car coverage, not liability insurance specifically.