Which type of insurance coverage is typically required for borrowed vehicles?

Liability coverage is typically required for borrowed vehicles because it protects the borrower (and the vehicle owner) against claims for bodily injury and property damage resulting from an accident. When someone borrows a vehicle, the borrower’s insurance policy may not cover the vehicle if the vehicle owner has not provided consent. Therefore, liability coverage ensures that if an accident were to occur, the costs associated with damages or injuries to others can be covered, thus providing a layer of protection for both the driver and the vehicle owner.

Comprehensive coverage, while it offers protection against non-collision-related incidents such as theft or vandalism, is not usually mandated by law when driving borrowed vehicles. Collision coverage protects against damages to the vehicle from a crash, which might also not be a legal requirement for borrowing. Personal injury protection focuses more on medical expenses after an accident regardless of fault, which is relevant but not specifically required for borrowing vehicles. Hence, liability coverage is the fundamental type of insurance that is legally required and significantly relevant in the context of borrowed vehicles.