What is the primary purpose of auto liability insurance?

The primary purpose of auto liability insurance is to provide coverage for injuries or damages to others. This type of insurance is essential because it protects the policyholder from financial loss in the event they are found responsible for an accident that causes bodily injury or property damage to another party. Liability insurance helps cover medical bills, rehabilitation costs, and lost wages for injured individuals, as well as repair or replacement costs for damaged property.

This protection is crucial because, without adequate liability coverage, the insured could face significant out-of-pocket expenses and potential legal actions arising from accidents. Therefore, auto liability insurance serves as a financial safety net to ensure that victims of accidents can be compensated for their losses while also fulfilling legal requirements that many states impose on vehicle owners.