What is the primary purpose of liability insurance in an auto policy?

Liability insurance in an auto policy primarily serves to protect the insured from claims made by others. It is designed to provide financial coverage in the event that the insured is legally responsible for causing bodily injury or property damage to another person. This includes covering legal defense costs associated with a lawsuit, settlement payments, and any judgments that may arise from claims filed against the insured.

This type of coverage is particularly important because it helps ensure that the insured is not left with significant financial burdens if they are involved in an accident where they are at fault. By having liability insurance, the insured can rest assured that they have a safety net in place to manage the potential impact of their actions on other individuals or properties. This coverage does not reimburse the insured for their own injuries or damages, which is why the other options do not reflect the primary purpose of liability insurance.