Who Made Car Insurance Mandatory? 
If car insurance is mandatory , there are two possible entities that make it so - either your State Department of Motor Vehicles or your auto loan or leasing company . Usually these days it is both . Most states require car insurance as part of their procedure for registering a car . In all cases if you have a loan , the lender will require you to carry both Comprehensive and Collision coverage in order to be sure that their interest is protected . If you are leasing your car , not only will Comp and Collision be required , but Liability coverage as well . 