Why Are We Required To Buy Car Insurance? 
I can only think of two institutions that actually require car insurance . First , if the state in which you live and register your car has a law that imposes such a requirement in order to register it . Second , if you buy a new car with a lien or lease a new car , the financing company will imposes requirements for insurance . Now , that having been said , it still makes good sense to buy car insurance even if either of those two reasons are not imposed . Car insurance protects you in the event it is stolen , damaged in an accident or otherwise affected . But further , it provides important financial protection in the event you cause an accident and are held liable for any injuries or damage that result from that accident . 