Why is Auto Insurance Necessary?

This may seem like a naive question: but why is Auto Insurance necessary?
Auto Insurance provides coverage of property loss, liability, and medical expenses. If you are at fault in an accident, your insurance company may have to pay for your property loss and medical bills in addition to any damages that you caused to the other driver's car and any injuries that they sustained during the accident. Likewise, if you are in an accident and someone else is at fault, their insurance should cover your expenses as defined by their insurance plan. That helps to protect you from a lawsuit if you get into an accident. There are also times that you may have an accident with someone who does not have coverage, and your insurance covers you during those times as well. Thus, if the insurance company chooses to, they can sue the other driver for their losses.
Factors that can determine your Auto Insurance premiums are age, gender, marital status, geographical location, previous driving violations, type of vehicle you wish to insure, accident claims, your credit rating, occupation, education, driving distance per year, years of driving experience, miles driven to work, business use of your vehicle, theft protection and safety devices on your car, and if you have multiple drivers and cars on your policy. For instance, a married female driver over the age of 25 will have a lower rate than that of a single 18 year old male driver. If you live in a rural area, your premiums will probably be lower than a driver who lives in New York City. The chance of getting into an accident is greater in highly congested cities. Safety and theft deterrent devices on cars usually land you a discount, because they are proven to reduce risk of injury and loss.