There are a few different reasons why it is required by law to have auto insurance. The first reason is for your own protection. If you get into an accident and you do not have insurance, you will be responsible for all of the damages that were done. This could end up costing you a lot of money, which is why it is important to have insurance in case something does happen.
Another reason why it is required by law to have auto insurance is for the protection of other people. If you get into an accident and you do not have insurance, the other person involved in the accident could sue you for all of the damages that were done. This could also cost you a lot of money, which is why it is important to have insurance in case something does happen.