What type of insurance coverage is mandatory in Iowa?

Answer: C — Liability insurance

In Iowa, liability insurance is mandatory for all drivers. This type of insurance provides financial protection to cover damages and injuries that you may cause to other people or their property in the event of an accident. The law requires drivers to maintain a certain minimum level of liability coverage to ensure that they can compensate others for damages resulting from their actions on the road. This requirement is crucial in promoting responsible driving and protecting the public from financial loss due to accidents. While other types of insurance, such as comprehensive and collision insurance, can be valuable in protecting your own vehicle and yourself from various risks, they are not mandated by state law in Iowa. Personal injury protection provides coverage for your own medical expenses regardless of fault, but it is also not a requirement for drivers in the state. Thus, liability insurance stands out as the essential coverage that drivers in Iowa must have to legally operate a vehicle.