Auto liability insurance pays for the damage you cause to property or people as a result of your negligence while driving (or, to be technical, while "using" the car...I recall a claim that occurred as a result of the insured hunting off the back of his truck, but that's another story). The maximum amount that the insurance company will pay is usually stated like this:
250/500/100 which means:
$250,000 of coverage maximum for any one person's injury related to the accident
$500,000 of coverage maximum for all injuries related to th...