• Most states require motorists to have automobile insurance.AUTOMOBILE DS CITROEN image by LESSIOUX from Fotolia.com
  
  Each state has different requirements for automobile insurance. Some states have strict regulations that result in a loss of driving privileges or registration for noncompliance with insurance laws. Others have lenient regulations. State laws requiring automobile insurance are designed to protect drivers from the financial devastation that an accident with an uninsured driver can cause.
  
  

Damages

• Not all states require liability insurance for automobiles. For instance, New Hampshire does not require drivers to carry insurance, but residents can lose driving privileges in the state if they are involved in an accident and cannot assume financial responsibility for the damages. Drivers who fail to pay for damages may be required to purchase a type of high-risk insurance.
  
  States can be either a tort state or a no-fault state. In a tort state, a driver can sue for damages if the other driver is determined to be at fault for an accident. In no-fault states, the driver's insurance company pays for damages, regardless of who is at fault for the accident. Drivers and passengers cannot sue the other driver under any circumstances in a no-fault state. Some states require the insurance company to pay for damages and allow drivers to sue.
  
  

Liability

• States require specific amounts of minimum liability coverage for drivers to register their vehicles. In most cases, drivers are required to carry liability insurance for bodily injury and property damage.
  
  

Personal Injury

• No-fault states may require drivers to carry personal injury protection insurance. This type of insurance covers bodily injury for each person in the vehicle at the time of an accident. Passengers in a vehicle that carry a personal injury protection insurance policy on a vehicle are covered by their own policy. Those that do not have a registered vehicle and their own policy are covered by the driver's policy. The policy also protects the insured when injured as a pedestrian.
  
  

SR-22

• States may require that drivers carry an SR-22 insurance policy, which is a type of high-risk insurance. Drunken drivers may be required to carry this type of insurance to maintain driving privileges. This type of insurance is usually expensive and some states require a policy for drivers who fail to comply with insurance laws. New Hampshire, for example, does not require mandatory automobile insurance, but drivers involved in an automobile accident without the ability to pay for damages may be required to carry an SR-22 insurance policy. This insurance only covers the individual named on the policy.