Final answer:
In most states, car owners are required to purchase liability insurance as the mandatory coverage.
Step-by-step explanation:
In most states, car owners are required to purchase liability insurance as the mandatory coverage. This type of insurance provides financial protection if the insured driver is at fault in an accident and causes injury or property damage to others. Liability insurance typically includes two types of coverage: bodily injury liability, which pays for medical expenses and lost wages of other people involved in the accident, and property damage liability, which covers the repair or replacement of other people's property damaged in the accident.