What type of insurance is required to cover damages to the other party in an accident?

Liability insurance is the type of insurance required to cover damages to the other party in an accident. This type of insurance protects the policyholder in the event that they are found to be at fault in an accident that causes injury or property damage to others. It ensures that the responsible driver can fulfill their financial obligations to the injured party, covering costs such as medical bills or repairs to damaged property.

Comprehensive insurance, on the other hand, covers non-collision incidents like theft or natural disasters, while collision insurance is specifically for damages to the policyholder's own vehicle caused by a collision. Health insurance addresses medical expenses for the policyholder and their passengers, but it does not provide coverage for damages incurred by other parties in an accident. Therefore, liability insurance is essential for anyone operating a vehicle.