Which type of auto insurance is typically required by law?

Liability coverage is the type of auto insurance that is generally mandated by law in most states. This type of coverage protects the insured from financial loss in case they are found legally responsible for causing an accident that results in bodily injury or property damage to another party. The requirement for liability coverage is in place to ensure that drivers can cover the costs associated with injuries or damages they may cause to others while operating a vehicle.

While comprehensive coverage, personal injury protection, and collision coverage are valuable options that provide different types of protection, they are not universally required by law. Comprehensive coverage protects against non-collision related incidents like theft or vandalism, personal injury protection covers medical expenses for injuries sustained by the insured and passengers, and collision coverage addresses damage to the policyholder's own vehicle after an accident. Each of these is optional and varies based on individual needs, driving frequency, and state regulations, but liability coverage remains the fundamental legal requirement to ensure accountability on the roads.