In what situation would an insured be indemnified by auto liability coverage?

Indemnification by auto liability coverage occurs when an insured is responsible for causing harm to another party through their actions. In this context, if the insured causes property damage to her neighbor, the liability coverage is designed to protect her from financial liability arising from that incident.

Auto liability coverage typically includes bodily injury and property damage liability, which means if the policyholder is found responsible for an accident that harms someone else's property, the insurance would cover the costs associated with those damages up to the limit of the policy. This includes repairs for the damaged property or compensation for any losses incurred by the neighbor due to the insured's actions.

The other situations presented do not involve indemnification through liability coverage. If the insured is injured in a car accident, that situation would typically call for personal injury protection or medical payments coverage, not liability. Similarly, if the insured repairs her own vehicle, it involves collision or comprehensive coverage, not liability coverage. Therefore, the correct understanding of indemnification in the context of auto liability is focused on third-party claims resulting from the insured's actions.