I have heard rumors that it is illegal to drive without car insurance; first of all, is this true? Secondly, if this is so, why? Many individual American motorists experience between 0-2 minor accidents in their lifetime, some of which are very minor (where both cars still run fine and there's just a bump or so). Any information would be useful.

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It's no rumor. It's true. Why do they require insurance? Because if you cause an accident and damage my vehicle, I have some assurance that my car will get repaired properly and in a timely manner. Let's say you have no insurance and you rear end my car, causing $3000 in damage. Do you have $3000 in your pocket to pay for my repairs? Most people don't. I don't want $50 per month for 5 years, I want my car fixed now, and since it was your fault, I shouldn't have to pay for it. That's why.

It is and if you ever get in a wreck you gonna be fined big time.