What is the primary purpose of liability coverage in auto insurance?

Liability coverage in auto insurance is specifically designed to protect the insured from financial loss resulting from legal claims made against them due to bodily injury or property damage that they may cause to others in an accident. This type of coverage is crucial because it ensures that if the insured is found at fault for an accident, their insurance policy can help pay for medical expenses, rehabilitation costs, and property repairs for the other party involved, thus safeguarding the insured's assets from potential lawsuits.

The focus of liability coverage is essentially on fulfilling the legal responsibility towards others rather than covering the insured's own vehicle repairs, lost wages, or theft. These responsibilities are addressed by other types of coverage within an auto insurance policy, which is why they do not represent the primary purpose of liability coverage.