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• Liability coverage is a fundamental component of car insurance, and it plays a pivotal role in the context of Turo rentals. This type of coverage protects the policyholder from financial liability in case they cause damage to another person's property or injure someone else while driving. In the context of Turo, liability coverage is particularly crucial because it shields the car owner from potential lawsuits and hefty fines if their rented vehicle is involved in an accident. According to a study by the Insurance Information Institute, liability claims accounted for approximately 35% of all auto insurance claims in 2022, highlighting the importance of having adequate coverage.