What is the primary function of personal auto insurance?

The primary function of personal auto insurance is to provide financial protection against physical damage and bodily injury resulting from vehicle accidents. This means that if you are involved in a car accident, personal auto insurance covers the costs associated with damages to your vehicle and any medical expenses for injuries that you or others may sustain in the accident.

This coverage is crucial because it protects individuals from potentially devastating financial losses that can occur from accidents, which may lead to significant repair bills for vehicles or medical expenses due to injuries. It helps ensure that drivers are financially responsible and can meet legal requirements by being able to pay for damages and injuries that they may cause while driving.

The other options address aspects of auto insurance but do not encapsulate its primary purpose. For instance, while discounts for safe driving are a benefit, they do not define the main function of the insurance itself. Coverage for routine vehicle maintenance or reimbursement for lost wages falls outside the primary goals of personal auto insurance, which focus on liability and property damage related to auto accidents.