What does liability coverage protect against?

Liability coverage is designed to protect the insured from financial responsibility when they cause bodily injury or property damage to another party as a result of an accident. This type of coverage pays for legal expenses, medical bills, and other costs associated with claims filed against the insured, ensuring that the insured does not face significant out-of-pocket expenses in the event of an accident for which they are at fault.

The other options do not align with the purpose of liability coverage. Vehicle theft relates to comprehensive coverage, which protects against loss due to theft or other non-collision incidents. Loss of personal belongings pertains to homeowners or renters insurance, not auto liability. Damage to the insured's vehicle falls under collision coverage, which addresses damages resulting from accidents. Therefore, the focus of liability coverage is exclusively on protecting against claims from third parties.