What is the minimum type of insurance coverage a driver must have?

The minimum type of insurance coverage a driver must have is liability insurance. This requirement is established to ensure that drivers have financial protection in the event that they cause bodily injury or property damage to others while operating a vehicle. Liability insurance helps cover the costs associated with injuries to other parties or damages that may occur as a result of an accident for which the insured driver is found to be at fault.

Unlike full coverage or comprehensive insurance, which provide broader protections including damage to the insured vehicle, liability insurance specifically addresses the legal obligations one may face after causing harm to others. Collision insurance, on the other hand, is aimed at covering damage to the insured vehicle resulting from an accident, while comprehensive insurance covers non-collision-related incidents such as theft or natural disasters. As such, liability insurance is the essential minimum coverage mandated by law for drivers, ensuring a basic level of financial responsibility on the road.