No matter which state you live in, you are required to have insurance in some form in order to register you vehicle in that state. Each state requires you to take responsibility for other people and property that you might damage by accident.
Your state will require you to carry some sort of liability insurance for both property and bodily harm.
It does not matter if your state is a no-fault state or not, should you cause an accident, you will be required to pay restitution to the injured parties.
When you get your car insurance, you will be required to purchase at least the state minimum of liability coverage, with the option to increase your coverage if you so choose. The state may require a limit that is too low for actual costs. You will need to talk to your car insurance agent when you compare auto insurance quotes to make sure that the amount that you are choosing will actually protect you in case of an accident.
The liability portion of your policy will cover any damages that may incur during an accident, both to your passengers and other vehicles or property. Liability pays for medical and the cost of damaged property up to your limits. It does not pay for any damages to your vehicle.
One of the reasons you should request auto insurance quote comparisons is because many states will set the limits so low that even though the insurance premium is cheap, you may be liable for remaining balances on medical bills or property. One accident can cause more than $10,000 in medical bills and if you are only covered for that amount, you may be sued for the remaining balance exceeding your coverage limit.
If the state requires you to carry 10/20/10, which means $10,000 maximum per person, $20,000 total for all occupants and $10,000 in property coverage, you may wish to increase the amounts to 100/50/100 or higher. It is not unusual to exceed $10,000 in medical expenses in a car crash.
An ambulance alone can run into the thousands. Add lab work, blood work, any type of physical therapy or rehabilitation stay in a hospital or nursing home and you can become financially exhausted.
If you can avoid being subject to those types of expenses by upgrading your liability coverages, it only makes good financial sense to do that.
While you are required by law to carry liability insurance on your vehicle, it does not mean that you are only allowed to carry the bare minimum insurance. In order to protect yourself, your passengers and cover property damage, you need to raise your car insurance limits. This can be done without a huge raise in your car insurance rates. You can do a little auto insurance quote comparison shopping to get your best rate.