What type of insurance is designed to cover expenses related to auto accidents?

Auto insurance is specifically designed to cover expenses related to auto accidents. It encompasses a range of coverage types including liability, collision, and comprehensive coverage, each of which addresses different financial risks associated with owning and operating a vehicle.

Liability coverage helps pay for damages you may cause to others if you're at fault in an accident, covering damages to their vehicle and any medical expenses they incur. Collision coverage takes care of repairs to your own vehicle following an accident regardless of who is at fault, while comprehensive coverage protects against non-collision-related incidents such as theft, vandalism, or natural disasters.

This targeted approach to addressing the specific risks and costs associated with vehicle ownership distinguishes auto insurance from other types of insurance like homeowners insurance, which protects property, health insurance, which covers medical expenses, and life insurance, which provides financial support to beneficiaries upon the policyholder's death. Each of those other insurance types serves a different purpose, thus solidifying auto insurance as the appropriate choice for covering auto accident-related expenses.