The basic and shortest answer to why auto insurance is required on your car, for all drivers in the United States, is in the event that you get into a car accident, damages will be covered. The longer answer to the question is because auto insurance will protect you (the driver), passengers in your car, the driver who is involved in an accident with you, passengers in their car, and if you have full coverage insurance on your insurance policy, it will cover body damage to your car, rentals, and whatever other expenses are involved when you get into a car accident.
Insurance is pretty much a “safety net.” It is used to protect drivers in the event they are involved in a car accident. The amount of coverage bought is up to each driver; but, the minimum coverage required by law, is that in the event you are in a car accident, your insurance should cover the damages and injuries to the person you are in an accident with. Full coverage is the best option; it covers everything, but if you can’t afford it, then you should look to other options for the best insurance coverage in your price range.