What is the role of liability insurance in car insurance?

Liability insurance serves a critical function within car insurance by providing protection for the insured individual in situations where they are deemed responsible for causing harm or damage to another person or their property. This type of insurance covers legal costs and any damages awarded to the affected parties, ensuring that the insured is financially protected against claims arising from accidents they caused.

For instance, if a driver is involved in an accident where they are found at fault, liability insurance will help pay for the other party's medical expenses and property damage. This is particularly important as the costs in such situations can be substantial, potentially leading to financial ruin without adequate coverage.

In contrast, the other options do not accurately describe the role of liability insurance. Covering damage to the insured vehicle pertains to collision or comprehensive coverage, while covering medical expenses for the insured relates to personal injury protection or medical payments coverage. Additionally, funding repairs for uninsured motorists falls under uninsured motorist coverage, which protects the insured when they are involved in an accident with a driver who lacks sufficient insurance. Thus, liability coverage specifically addresses the responsibility toward others rather than the insured's own vehicle or personal injuries.