What is the function of bodily injury liability coverage?

Bodily injury liability coverage serves the primary function of covering the medical expenses and other costs related to injuries that others sustain as a result of the insured's actions, typically in the context of an automobile accident. This type of coverage is crucial for protecting the insured from the financial ramifications that can arise when they are found to be at fault for causing harm to another person. It typically includes coverage for medical bills, lost wages, and sometimes pain and suffering for the injured party.

In contrast, the other options represent different aspects of insurance coverage that do not align with the specific purpose of bodily injury liability. For instance, coverage for damages to personal vehicles relates to property damage liability rather than bodily injury. Legal defense costs pertain to liability insurance generally but are not the main purpose of bodily injury coverage itself. Similarly, coverage for damages to rental properties isn't relevant to bodily injury liabilities, as it falls under property insurance or specific elements of renters’ insurance. Thus, the focus of bodily injury liability is distinctly on safeguarding against liability for injuries to others caused by the insured.