What type of coverage is typically required by law for vehicle owners?

Liability coverage is typically required by law for vehicle owners because it protects against claims resulting from injuries and damages that the insured driver may cause to other people and their property in an accident. This mandated coverage ensures that drivers have a means to compensate others for costs related to bodily injury or property damage caused by their actions on the road.

Most states have established minimum liability limits that vehicle owners must adhere to in order to legally operate their vehicles. This requirement underscores the importance of financial responsibility on the part of drivers, as it helps protect the public from the financial repercussions of auto accidents. While other coverages such as comprehensive, collision, or personal injury protection may be advisable for a comprehensive insurance plan, they are generally not mandated by law, making liability coverage essential for compliance with state regulations.