What is an "automobile liability insurance policy" typically designed to cover?

An automobile liability insurance policy is specifically designed to protect the policyholder from legal liabilities that may arise when they are at fault in an accident. This coverage typically includes expenses related to injuries suffered by other individuals and damages caused to someone else's property as a result of the insured's driving.

This type of insurance ensures that if an accident occurs where the insured is deemed responsible, the policy will cover the costs associated with claims made against them, which often includes medical costs for the injured parties and repair or replacement costs for damaged property. Liability coverage is a crucial component of auto insurance, as it not only protects the driver but also ensures that injured parties receive compensation for their losses.

Other options, such as vehicle theft coverage, medical expenses for the driver, and repair costs for the insured's vehicle, relate to different types of coverage that may be included in broader insurance policies but are not the primary focus of an automobile liability insurance policy. Each of those concerns reflects different potential issues related to automobile operation, not the legal liabilities that the correct answer addresses.