What is the primary purpose of auto insurance?

The primary purpose of auto insurance is to provide financial protection against accidents. This means that auto insurance helps cover the costs associated with bodily injury and property damage resulting from car accidents. It ensures that drivers can manage the financial implications of accidents, whether they are at fault or not. This coverage includes medical expenses for injuries, repair costs for damaged vehicles, and any potential legal liability claims that may arise from an accident.

While there are other aspects to auto insurance, such as providing coverage for vehicle repairs or theft, these are secondary to the overarching goal of protecting individuals from the financial fallout of accidents. Additionally, while meeting legal requirements for driver licensing is important, it is not the main purpose of auto insurance itself; rather, it is a consequence of the insurance being a legal requirement in many places. Thus, the focus on providing robust financial protection against the risks associated with driving is why this option is the most accurate representation of the primary purpose of auto insurance.