What is the main function of automobile insurance liability coverage?

Automobile insurance liability coverage primarily serves to protect the policyholder against claims for bodily injury or property damage resulting from accidents for which they are found at fault. This type of coverage is essential because it helps cover medical expenses, lost wages, and other damages incurred by third parties in an accident. Liability coverage is mandated by law in most areas, ensuring that drivers take financial responsibility for the harm they may cause to others while operating their vehicles.

When a driver is involved in an accident that results in injuries or damages to another vehicle or property, liability insurance will pay for those costs, up to the limits specified in the policy. This protection not only safeguards the individual’s financial assets but also helps maintain compliance with legal requirements, as failing to have sufficient liability coverage can lead to severe penalties.

The other options refer to specific types of coverage that are not the main function of liability insurance. Theft coverage pertains to loss of the vehicle itself, roadside assistance offers help in situations like breakdowns, and total loss replacement is targeted towards the vehicle's value in the event it is deemed irreparable. Each of these serves a different purpose within the broader scope of automobile insurance.