What does Liability Insurance specifically cover?

Liability insurance is designed to provide coverage for injuries or damages that you, as the insured driver, cause to other individuals or their property. This means that if you are at fault in an accident, liability insurance will help cover the costs associated with medical expenses for the injured parties and the repairs or replacement of damaged property owned by others.

This coverage is essential because it protects you from the financial burden that can arise from legal claims or lawsuits stemming from accidents for which you are responsible. It ensures that the injured parties can receive compensation for their losses, which is a fundamental purpose of liability insurance.

The other options do not accurately describe the specific coverage of liability insurance. For instance, liability insurance does not cover damage to your own vehicle or your own medical expenses. Understanding the limitations and purpose of liability insurance is crucial for drivers to ensure they have the appropriate protection while on the road.