The coverage included in an automobile insurance policy that covers property damage is _______ insurance.
A. term
B. liability
C. major medical
D. supplemental
Auto insurance policies that insure for property damage is referred to as liability coverage. This type of coverage is set in place as a requirement by state law. Each licensed driver is obligated to obtain and maintain liability coverage to ensure financial restitution of any at-fault damage sustained to another individual's property.