Auto liability insurance is a type of insurance coverage that helps protect drivers financially if they are responsible for causing an accident. It typically covers two main areas: bodily injury liability, which pays for medical expenses and lost wages of the other party, and property damage liability, which covers repairs to the other person's vehicle or property. Having auto liability insurance is often a legal requirement in many places, ensuring that drivers can compensate others for damages they cause. The amount of coverage needed can vary by state, so it's important for drivers to understand their local laws and choose a policy that meets those requirements.