What is the purpose of liability coverage in a Personal Auto Policy?

Liability coverage in a Personal Auto Policy is primarily designed to protect the insured from legal and financial responsibilities that arise when they are at fault in an accident that causes injury or damage to another party. This means that if the insured driver injures someone or damages someone else's property while driving, the liability coverage will step in to provide payment for those claims, up to the policy limits.

This protection includes not only payment for physical injuries suffered by other individuals, such as medical expenses and rehabilitation costs, but also for property damage, which could involve repairs to another person's vehicle or other property that was damaged in the accident. The intent of this coverage is to help ensure that the insured does not suffer significant financial loss due to claims made against them resulting from their driving actions.

Other options, such as covering damages to the insured vehicle, medical expenses for the insured, or rental vehicle expenses, pertain to other types of coverage within the Personal Auto Policy, but they do not encapsulate the core purpose of liability coverage.