Which statement about liability coverage in auto insurance is correct?

Which statement about liability coverage in auto insurance is correct?

• A. Damages to your own vehicle
• B. Damages to others when you are at fault
• C. Medical expenses for you regardless of fault
• D. Collision coverage

Answer: (B)

Liability coverage is designed to cover damages you cause to others in an accident where you’re at fault. It pays for injuries to other people and for damage to their property, up to your policy limits. That’s why the statement about damages to others when you are at fault is the correct description of liability coverage. It doesn’t pay for damage to your own vehicle—that would be collision (or comprehensive for non-collision damage)—nor does it cover your own medical expenses, which are handled by medical payments or personal injury protection depending on the policy and state.

Liability coverage is designed to cover damages you cause to others in an accident where you’re at fault. It pays for injuries to other people and for damage to their property, up to your policy limits. That’s why the statement about damages to others when you are at fault is the correct description of liability coverage. It doesn’t pay for damage to your own vehicle—that would be collision (or comprehensive for non-collision damage)—nor does it cover your own medical expenses, which are handled by medical payments or personal injury protection depending on the policy and state.