What type of insurance is required by law for vehicle operation?

Liability insurance is the type of insurance required by law for vehicle operation in most jurisdictions. This insurance provides coverage for bodily injury and property damage that the insured driver may cause to other people in the event of an accident. Its primary purpose is to ensure that drivers can cover the costs associated with harm or damage caused to others, which helps protect victims and ensures that they are compensated for their losses.

The requirement for liability insurance helps maintain financial responsibility among drivers, ensuring that those who operate vehicles can fulfill their obligations if they are found at fault in an accident. This legal requirement is designed to protect all road users from potential financial ruin due to accidents, making it a vital aspect of vehicle operation.

In contrast, other types of insurance such as comprehensive and collision are optional and cover different scenarios, like damage to the insured vehicle from non-collision incidents or accidents involving the insured vehicle, respectively. Uninsured motorist coverage also is typically optional and protects drivers against risks posed by uninsured or underinsured motorists.