Which statement is true concerning Liability coverage in a Personal Auto Policy?

Liability coverage in a Personal Auto Policy is designed to protect the insured against financial loss in the event they are found legally responsible for causing bodily injury or property damage to another party due to a vehicular accident. The definition of "insured" is crucial here, as it specifically includes the named insured, as well as other individuals who might be driving the vehicle with permission.

The statement that liability coverage gives coverage only to those with the status of "insured" accurately captures the essence of this type of coverage. This means that the coverage applies to the named insured and any designated drivers or authorized users of the vehicle, rather than providing blanket coverage to all individuals involved in an accident.

Liability coverage does not ensure that everyone involved is covered; instead, it is contingent on the named insured's legal responsibility for the accident. Additionally, unlike what is suggested by other options, liability coverage does not cover damage to the insured’s own vehicle or injuries to themselves, but rather focuses on damages caused to others.