What minimum insurance coverage is required by all states?

Liability insurance is the minimum coverage required by all states because it protects others in the event of an accident for which you are at fault. This type of insurance covers bodily injury and property damage to other parties, ensuring that victims can receive compensation for their losses. The main purpose of requiring this insurance is to provide financial responsibility for drivers and to promote roadway safety, as it helps to cover costs arising from accidents.

Other forms of insurance, such as comprehensive insurance or collision coverage, are not mandated by law and therefore do not serve the same universal purpose of preventing financial hardship for third parties involved in an accident. While uninsured motorist coverage is important, it specifically addresses situations involving drivers without insurance and is not required in every state. Thus, liability insurance is fundamental and legally required across all states, establishing a baseline protection for everyone on the road.