In personal automobile insurance, what does liability coverage include?

Liability coverage in personal automobile insurance is designed to protect the policyholder against the financial consequences of being found legally responsible for causing injury to others or damage to their property as a result of an automobile accident. This coverage encompasses both bodily injury liability, which addresses medical expenses, lost wages, and other costs associated with injuries sustained by others, as well as property damage liability, which covers the costs of repairing or replacing the other party’s vehicle or other property that has been damaged in the accident. The purpose of this coverage is to ensure that drivers can fulfill their financial obligations if they cause harm to others while operating their vehicles, thus promoting responsible driving and providing peace of mind.

The other options referenced different elements of automobile insurance that do not fall under liability coverage. Comprehensive and collision coverage, for instance, pertains to damage to the policyholder's own vehicle rather than liability toward others. Total loss and diminished value claims relate to specific aspects of insurance claims, not broad liability coverage. Lastly, limiting liability to only personal injuries incurred by the driver ignores the essential aspects of property damage and injury to others that are covered under liability insurance.