What type of coverage does bodily injury liability insurance provide?

Bodily injury liability insurance is specifically designed to provide compensation for injuries sustained by others as a result of the insured's actions or negligence. This type of coverage is fundamental in auto insurance policies and is intended to protect the policyholder from financial responsibility for medical expenses, rehabilitation costs, and pain and suffering of other parties injured in an accident for which the insured is at fault.

This focus on compensation for injuries to others highlights the liability aspect of this coverage, ensuring that victims receive necessary medical treatment without burdening the responsible party with direct payments. It plays a crucial role in safeguarding the insured from potential lawsuits and significant financial loss stemming from accidents.

In contrast, other types of coverage mentioned in the options, such as property damage, coverage for the insured's own vehicle, or compensation for lost wages of the insured, do not align with the primary function of bodily injury liability insurance, which solely pertains to the wellbeing of third parties affected by the insured's actions.