What is a key aspect of Liability Coverage?

Liability coverage is fundamentally designed to provide financial protection when you are found legally responsible for causing injury or damage to another person or their property. This aspect of liability coverage is crucial as it ensures that if an accident occurs—such as a car crash where another party is injured or their property is damaged—the insurance will help cover the costs associated with those claims. This can include medical expenses, lost wages, and legal fees if you are sued.

Understanding this function highlights the responsibility of individuals to protect others and their property in situations where they may be at fault. In contrast, other options like covering your own medical expenses, providing roadside assistance, or replacing stolen vehicles pertain to different types of coverage that address specific situations but do not reflect the essence of liability coverage.