PAP's liability coverage primarily does what?

PAP's liability coverage primarily does what?

• A. Pays damages for bodily injury or property damage the insured is legally responsible for; defends the insured and indemnifies a third party
• B. Pays all medical expenses regardless of fault
• C. Covers only damage to the insured's own vehicle
• D. Reimburses the insured for out-of-pocket expenses

Answer: (A)

Liability coverage in a Personal Auto Policy protects you when you’re legally at fault for causing injuries or property damage to others. It pays the damages the at-fault driver owes to third parties, up to your policy limits, and it provides a defense to lawsuits and indemnifies the other party. This is why the option describing paying damages for bodily injury or property damage you’re legally responsible for, plus defending you and indemnifying the third party, is the best fit. The other statements describe medical payments (or PIP), coverage for the insured’s own vehicle (collision/comprehensive), or reimbursement of out-of-pocket expenses, which aren’t the purpose of liability coverage.

Liability coverage in a Personal Auto Policy protects you when you’re legally at fault for causing injuries or property damage to others. It pays the damages the at-fault driver owes to third parties, up to your policy limits, and it provides a defense to lawsuits and indemnifies the other party. This is why the option describing paying damages for bodily injury or property damage you’re legally responsible for, plus defending you and indemnifying the third party, is the best fit. The other statements describe medical payments (or PIP), coverage for the insured’s own vehicle (collision/comprehensive), or reimbursement of out-of-pocket expenses, which aren’t the purpose of liability coverage.