What does the liability portion of an auto insurance policy cover?

The liability portion of an auto policy covers bodily injury and property damage that the insured causes to others (third parties) in an accident for which the insured is at fault — for example, injuries to people in another car or damage to their vehicle or property. It pays damages up to the policy limits and provides legal defense. It does not cover the insured's own vehicle damage (that is collision/comprehensive) or the insured's own injuries (that may be covered by medical payments or personal injury protection). Most states require minimum auto liability coverage. Understanding what auto liability covers — harm to others — is core casualty content.