What does Coverage A in a Personal Auto Policy typically refer to?

Coverage A in a Personal Auto Policy refers to liability coverage for bodily injury and property damage. This coverage is essential because it protects the insured against legal liability for damages caused to other people or their property in an auto accident for which they are at fault. This means that if the insured driver injures someone or damages someone else's property while operating their vehicle, the liability coverage will help cover the injured party's medical expenses, lost wages, and property repair costs, up to the policy limits.

This coverage is crucial for drivers, as it ensures that they have financial protection in case of an accident where they are deemed responsible, thereby preventing potentially devastating out-of-pocket expenses from lawsuits or claims. Understanding the scope of liability coverage helps policyholders recognize their responsibilities and the importance of maintaining adequate limits to protect themselves financially.