Compulsory Auto Liability Insurance Law and Legal Definition

Certain U.S. states require all registered vehicles to carry minimum compulsory auto liability insurance. Almost all states require motorists to have compulsory auto liability insurance before they can legally drive a car. In case of a motor accident, this insurance pays the other driver’s medical, car repair and additional costs. The minimum amounts of insurance or other financial security that drivers must pay for the harm is set by the state insurance laws.