Is auto liability intended to cover torts or contractual liability?

Auto liability insurance is designed to cover damages and injuries that arise from torts related to the use of a vehicle. A tort is a civil wrong that causes harm or loss to another party, for which legal action can be taken. In the context of auto liability, this typically includes incidents such as car accidents where one party is held responsible for causing injury or damage to another person or their property.

This type of insurance primarily covers claims for bodily injury and property damage resulting from negligent driving, which falls under tort law. It is important to understand that while auto liability focuses on tortious conduct, it does not typically extend to contractual liabilities, which arise from agreements between parties. Therefore, the correct answer centers on the fact that auto liability is specifically aimed at addressing torts rather than contractual obligations.