Auto insurance protects you against any damage that you might cause to another driver or that you may sustain. Typically insurance required by the state includes bodily injury and property damage liability insurance. These mandated coverages provide financial relief for potential victims of any damages that may result from an auto accident. You must carry enough insurance to cover the costs of potential personal injury and property damage caused to another person.
In the United States, New Hampshire is the only state that doesn’t require car insurance. However, New Hampshire drivers must be able to prove they have the financial resources to cover the cost of any potential damages; they remain financially liable for any damages they cause.
Your Vehicle Ownership Status May Require you to Purchase Additional Coverage

Operating an automobile has the potential to be hazardous both to you and others on the road. As a result, you must have auto insurance sufficient to cover any damages you may cause. However, you may need to purchase additional insurance if you do not own your vehicle. For example, if you lease a vehicle you may have to purchase additional insurance in order to protect the financial interest of the leasing agent.
Furthermore, collision insurance will be required if your vehicle is on a loan. However, all vehicles, regardless of your ownership status, must carry liability insurance to protect other drivers on the road.
Each State Regulates Auto Insurance
Each state moderates the requirements for auto insurance. The state prioritizes the financial protection of individuals in this regard, as it protects the state economy; on the basis that if at-fault drivers cannot compensate others for their losses, both the individual and the economy as a whole would suffer. Basically, the idea is that if several people fall into financial ruin simultaneously, the economy would suffer as less money would be in circulation.
Health Insurance Covers Individuals Not Third Parties

The purpose of health insurance is to provide protection to the insured individual, and not to additional third parties. Auto insurance can help supplement your health insurance, giving you access to more treatment options, and can provide coverage to your passengers. After an auto accident, you can use your own health insurance after you have exceeded your PIP benefits, or to cover the cost of your medical treatment.
Auto Insurance Protects Your Assets in Case of Disaster
If you are at fault for an auto accident you will be held financially liable for any damages that occur and you may even face a lawsuit. Auto insurance will help you cover these costs, saving you from paying the damages out of pocket. Furthermore, depending on your policy, your auto insurance may cover the cost of vehicle repairs. This will protect you from paying out of pocket for costly repairs. And lastly, if your accident ends up in court, your insurance company will provide an attorney to represent you.
Were you or someone you know involved in a recent auto accident? Call Auto Accident Care Network now at 801-683-1948 to be connected with a live care advocate. Our team at AACN can connect you to trusted attorneys and doctors to schedule a free legal consultation, a free thirty-minute massage, and a no-cost medical exam!