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You need auto insurance because you are liable by law to pay for losses you cause to others in the event of an automobile accident. Term Or Whole Life Insurance - Which Is Right For You? One of the most important things you will ever do is to choose a life insurance policy that will provide for your family after you are gone. Choosing the life insurance policy that is right for you and your family can be quite confusing. An Intro To Auto Insurance Although premiums, policies and prices vary widely, the mandate does not. Automobile insurance is an unavoidable expense of driving. Types of Auto Insurance Coverage Explained A question you might ask yourself is: why must we carry auto insurance? Hopefully one answer you should hear is to protect yourself and your car. For those same reasons the government also requires you to have car insurance. 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