What does "property damage liability" cover in auto insurance?

Property damage liability in auto insurance specifically addresses the financial responsibility of the insured for damages caused to another person's property as a result of an accident in which they are at fault. This coverage is designed to ensure that if the insured driver damages another vehicle, fence, or any other type of property during an accident, the insurance policy will cover the costs of those damages. This is an essential aspect of auto insurance, as it protects the insured from potential financial ruin due to legal claims and repairs that they may be responsible for as a result of their actions on the road.

The other options do not align with the definition of property damage liability. For instance, coverage for the insured's own property or medical expenses due to their own injuries falls under different sections of an insurance policy, such as comprehensive or collision coverage and medical payments coverage, respectively. Legal fees, while important, would typically be covered under a separate liability provision, often referred to as legal defense costs in personal injury liability or separate coverage in the event of a lawsuit.