What is auto liability coverage designed to protect against?

Auto liability coverage is specifically designed to protect against claims for bodily injury or property damage that you may cause to others during an accident while driving. This type of insurance coverage is essential because it ensures that if you are found at fault in a vehicle accident, your insurance will cover the costs associated with injuries sustained by other parties and any damage to their property. This is crucial for financial protection, as the costs incurred from accidents can be significant, potentially involving medical expenses, repair costs, and legal fees.

The correct answer encompasses both aspects of liability—bodily injury and property damage—making it a fundamental component of auto insurance designed to meet legal requirements and provide a safety net for drivers.