Final answer:
Liability coverage is the part of auto insurance responsible for covering the medical and property damage expenses of the other driver when the insured is at fault. Hence, option (c) is correct.
Step-by-step explanation:
The component of auto insurance that covers medical costs and property damage of the other driver if you're at fault in a wreck is c) Liability coverage. Liability insurance is essential for protecting drivers against the financial burden of causing bodily injury or property damage to others in the event of an accident for which they are responsible.
As an example, if we consider a pool of 100 drivers with various risk levels and calculate the total damage, we can understand the significance of auto insurance in covering these unexpected costs.
Liability coverage is essential to protect individuals and businesses from the financial consequences of unintentional harm to others. The coverage limits vary, and individuals or businesses may choose coverage based on their specific needs and potential risks.