Motor vehicle liability insurance is designed to cover which of the following?

Motor vehicle liability insurance is fundamentally designed to protect the insured against financial losses arising from damages they may cause to other people or their property during an accident. This coverage typically includes both bodily injury and property damage liability.

When the insured is involved in an accident and is found to be at fault, liability insurance ensures that the costs associated with injuries to other individuals and any damage to their property are covered. This is crucial because, without this insurance, the insured would be personally liable for those costs, which could be substantial and lead to significant financial hardship.

In contrast, coverage options related to the insured's own vehicle or personal injuries do not fall under liability insurance. For instance, damages to the insured vehicle or personal injuries sustained by the insured would typically be covered under separate types of coverage, such as collision or personal injury protection. Therefore, the correct answer highlights the primary function of motor vehicle liability insurance, focusing on the protection it offers against claims made by others rather than the insured's own losses.