Which statement about liability insurance is correct?

• A. to your own vehicle in a collision
• B. done to someone else where you are at fault
• C. to your own property
• D. medical expenses for yourself

Answer: (B)

Liability insurance covers injuries or property damage you cause to others when you are at fault. It helps pay for people’s medical bills and for repairs to their property, up to your policy limits. It does not cover your own injuries or damage to your own vehicle (that’s collision or comprehensive coverage), nor does it pay for your own medical expenses (that’s medical payments or PIP). So the statement describing liability insurance as coverage for harm you cause to someone else when you’re at fault is the correct description.