What type of insurance typically covers damages caused by car accidents?

Auto insurance is specifically designed to provide coverage for damages resulting from car accidents. This type of insurance encompasses various types of coverage, such as liability coverage (which pays for damages you cause to others), collision coverage (which pays for damages to your own vehicle resulting from an accident), and comprehensive coverage (which covers non-collision-related damages, such as theft or weather-related damage).

In the context of a car accident, auto insurance is crucial because it ensures that financial responsibility is managed. If a driver causes an accident, their auto insurance can help pay for the damages incurred by the other party, reducing the financial burden on the policyholder.

In contrast, property insurance protects personal belongings and structures against risks like theft or damage but does not specifically address car accidents. Health insurance covers medical expenses but is unrelated to vehicle damage. Life insurance provides financial support to beneficiaries upon the policyholder's death and also does not pertain to accidents or vehicle protection. Therefore, the correct choice in terms of coverage for damages caused by car accidents is auto insurance.