What type of insurance coverage is required by most states?

Liability coverage is mandated by most states as it protects against claims resulting from injuries and damage to other people or their property in the event of an accident for which the policyholder is deemed at fault. This form of insurance ensures that drivers can financially cover others' costs if they cause harm, aligning with public safety regulations that aim to protect individuals on the road.

Most states require minimum liability coverage, which typically includes bodily injury and property damage liability, ensuring that drivers can fulfill their financial responsibilities after an accident. This leads to safer driving conditions and assures that victims of accidents have a means to recover damages.

Comprehensive coverage, collision coverage, and gap insurance are optional and provide additional protection based on specific circumstances, but they are not universally required by law as liability coverage is. Understanding the distinction between required and optional coverages is fundamental in grasping automobile insurance regulations and responsibilities.