In general, what type of damage does mandatory liability insurance cover?

Correct answer: Personal injury and property damage.

It covers both types. It pays for personal injury, such as injuries or death, and property damage, such as damage to another vehicle, that the insured vehicle causes to others. Coverage is subject to limits and some exclusions, such as injuries to the driver who causes the accident.

Ley sobre responsabilidad civil y seguro en la circulación de vehículos a motor