Compulsory insurance refers to any insurance that individuals or businesses are legally required to purchase, primarily to protect victims of accidents and injuries. This type of insurance is particularly common for high-risk activities such as driving and operating a business with employees. Each state in the U.S. determines its own compulsory insurance rules, including the types of coverage required and minimum limits. While automobile liability insurance is the most prevalent form of compulsory insurance, some states like New Hampshire and Virginia do not mandate car insurance. In contrast, motorcycle insurance is required in nearly all states except Florida. Employers are often required to carry workers' compensation insurance, which covers medical expenses and lost wages for employees injured on the job. Additionally, many states require medical professionals to have professional liability insurance to safeguard against malpractice claims. The Affordable Care Act (ACA) also plays a role in promoting health coverage, which some view as a form of compulsory insurance. Overall, compulsory insurance aims to mitigate financial risks and ensure that victims and workers receive necessary support following accidents.