Insurance is a key part of financial protection, helping to cover unexpected costs like medical bills, car accidents, or property damage. While many types of insurance are optional, some are required by law, particularly those that protect not only the insured but also others who may be affected.

In most states, at least one type of insurance is mandatory, and failing to carry it can result in fines, license suspensions, or legal trouble. This requirement helps ensure that, in the event of an accident or damage, the responsible party can cover the costs.

So, which type of insurance is legally required in most U.S. states? Let’s test your knowledge of financial responsibility!