What type of coverage is provided when the insured is at fault in an accident?

Liability coverage is designed to protect the insured when they are found at fault for an accident that causes damage or injury to another party. This type of coverage typically pays for the bodily injury and property damage incurred by others due to the insured's negligence in the event of an accident.

In most standard auto insurance policies, the liability coverage consists of two main components: bodily injury liability and property damage liability. Bodily injury liability covers medical expenses, lost wages, and pain and suffering for the other party, while property damage liability pays for damage to the other person’s vehicle or property.

This coverage is essential for meeting legal obligations since most states require drivers to carry a minimum amount of liability insurance. It enables at-fault drivers to fulfill their financial responsibilities resulting from accidents they cause, protecting them from lawsuits and out-of-pocket costs that could arise from such incidents.

In contrast, other types of coverage mentioned, like uninsured motorist coverage, applies specifically when the other driver lacks insurance, collision relates to damage to the insured's own vehicle regardless of fault, and comprehensive coverage focuses on non-collision-related incidents such as theft or natural disasters.