Auto insurance is mandatory in many places for several reasons. First, it helps protect you financially in case of an accident. If you are at fault in a car accident and someone is injured or their property is damaged, you may be held responsible for the costs. Auto insurance can help cover these costs, including medical expenses, vehicle repairs, and legal fees. Second, mandatory auto insurance helps ensure that all drivers on the road are financially responsible. By requiring everyone to have insurance, it helps prevent uninsured drivers from causing financial harm to others. Third, auto insurance is also required by lenders if you are financing or leasing a vehicle. This is because the lender wants to protect their investment in case the vehicle is damaged or totaled. Fourth, mandatory auto insurance helps promote safer driving habits. Knowing that you are financially responsible for any damages or injuries can encourage drivers to be more cautious and follow traffic laws. Fifth, auto insurance can also provide coverage for theft, vandalism, and other non-accident-related damages to your vehicle. This can give you peace of mind knowing that you are protected in various situations. It's important to note that the specific requirements for auto insurance vary by jurisdiction, so it's best to check the laws in your area to understand the exact coverage and limits you need. I hope this helps clarify why auto insurance is mandatory in many places!