Liability is what is intended to pay for medical costs, funeral expenses, lost wages, punitive damages, car rentals, repairs, and compensation for pain and suffering for people in the other car involved in an accident.
This is the term that is used to refer to the fact that a person is responsible for certain payments.
A person is liable when there actions may have led to an adverse effect to someone else. In this case they have to take care of the expenses for the party involved.
An example is an accident that may have occured due to the carelessness of a driver. The driver is going to be liable for the costs and the treatment of the people involved.
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