It covers the "other guy" if you run into him.
It covers the "other guy" if you run into him.
It can protect both. For instance, it can protect you from 3rd party law suits, even if you are not at fault, but still cause damage to a 3rd party.
It also protects the lien holder, in the case of a new car where you've taken out a loan, or a lease.
Mark
It also pays for your auto repair/replacement if needed.
I have a $250 deductable for that on my insurance.