Under what coverage will Katherine's auto insurance policy pay for bodily injury and property damage?

Liability Coverage is designed to protect the policyholder from financial loss if they are found to be responsible for causing bodily injury or property damage to another party in an accident. When a person is at fault in a collision, their liability coverage will pay for the medical expenses of the injured party and any damage to their property, up to the policy limits.

Comprehensive Coverage, on the other hand, addresses damages to the insured vehicle that are not the result of a collision, such as theft, vandalism, or natural disasters, and does not cover bodily injury or damage to others. Collision Coverage pays for damages to the insured's own vehicle resulting from a collision, again not serving to provide for other parties’ injuries or damages.

Uninsured Motorist Coverage protects the policyholder when involved in an accident with a driver who does not have sufficient insurance, but it does not cover damages to other parties. Thus, Liability Coverage is the correct option for covering bodily injury and property damage caused to others in an accident for which the insured is at fault.