BMV Practice Test

What is the minimum insurance coverage typically required for vehicles?

1. Health insurance only

2. Liability insurance

3. Collision insurance

4. Comprehensive insurance

The correct answer is: Liability insurance

The minimum insurance coverage typically required for vehicles is liability insurance. This type of insurance is designed to cover damages or injuries that you may cause to others in the event of an accident for which you are found responsible. It includes two main components: bodily injury liability, which covers medical expenses and lost wages for the other party, and property damage liability, which pays for the repairs to the other party's vehicle or property. Liability insurance is mandated by law in most states to ensure that drivers have a means to compensate others for damages they cause while driving. The specific minimum amounts can vary by state, but the requirement is universally focused on protecting other individuals rather than covering your own damages. The other types of insurance mentioned are not required by law. Health insurance primarily covers medical expenses but is not specific to vehicle-related incidents. Collision insurance is optional and covers damage to your vehicle from a collision, while comprehensive insurance covers non-collision incidents, such as theft or natural disasters. Neither collision nor comprehensive insurance is mandated for drivers to carry; hence, liability insurance is the primary requirement.