What does liability coverage in a PAP typically cover?

Liability coverage in a Personal Auto Insurance Policy (PAP) is designed to protect the insured from financial loss if they are found legally responsible for causing injury or damage to others while operating their vehicle. This means that if the insured is involved in an accident that results in bodily injury to another person or property damage, liability coverage will cover the costs associated with those claims, including medical expenses, lost wages, and any legal fees that might arise from lawsuits related to the incident.

This coverage is crucial because it ensures that the insured does not have to pay out of pocket for these potentially significant expenses. Instead, the insurance company handles these claims up to the policy limits, providing essential financial protection.

In contrast, injury to the insured driver is typically covered by different types of coverage, such as medical payments or personal injury protection (PIP), and not by liability coverage. Additionally, repairs to the insured vehicle fall under collision or comprehensive coverage rather than liability. Personal belongings within the vehicle are often covered under homeowners or renters insurance, not the PAP itself, making those options unsuitable in this context. Thus, the focus of liability coverage on the legal responsibilities toward others is what sets it apart and defines its purpose.