The minimum amount of auto liability insurance that meets a state law. Financial responsibility laws in every state require all automobile drivers to show proof, after an accident, of their ability to pay damages up to the state minimum. In compulsory liability states this proof, which is usually in the form of an insurance policy, is required before you can legally drive a car.

"Compulsory Auto Insurance" In Context

"All states except New Hampshire have some form of compulsory auto insurance requirement. Mississippi law has required it since the 1950s, but enforcement has been weak. In 2009, with 2.7 million registered vehicles in Mississippi, there were ..."