Auto liability coverage would cover losses due to which scenario?

Auto liability coverage is specifically designed to protect policyholders from financial loss when they are at fault in an automobile accident. It typically encompasses two main components: bodily injury liability and property damage liability. The focus is on injuries and damages inflicted on other parties involved in an accident.

In the scenario of bodily injury liability, coverage includes medical expenses, lost wages, and any legal costs that arise from accidents resulting in injuries to others. This aligns with the context of the question, where option C specifically mentions bodily injury to others in an auto accident. This is the core function of auto liability insurance: to ensure that if the insured is liable for causing harm to another party during a vehicular incident, they have financial protection for those unforeseen expenses.

Other scenarios presented do not fully capture the essence of auto liability coverage. For instance, accidents resulting in only car damages do not necessarily involve bodily injury claims, and injuries to the driver would be covered under their own health insurance or under a different type of coverage (e.g., personal injury protection). Property damage caused by the insured's vehicle may be relevant, but it would typically only cover damage to the other party's property and not exclusively the insured’s property. In summary, option C correctly identifies the situations that auto liability