When Did It Become Mandatory For Car Insurance? 
The first actual mandatory auto insurance was in 1927 in the state of Massachusetts . Shortly after most other states began mandating auto insurance . Allot has changed in the laws over the years as it relates to financial responsibility but mandatory auto insurance has been around for a long time . Insurance is state regulated , not federal . There is a couple of states still do not mandate auto insurance if you can demonstrate the financial means to cover the minimum amounts for bodily injury , property damage and liability in that state . Of course you might as well put a sign around your neck that says please sue me , I have money . 