There are different ways to establish financial responsibility besides liability auto insurance policy. Some other valid ways include the payment to the Office of Driver Services for all costs related to your accident, if all involved in the accident don't press charges, and reach an agreement between parties involved, among others. The most common is to own a liability insurance Policy. There is no law in this state that requires insurance for drivers, but there is the obligation to comply with all expenses generated by an accident. Therefore it is highly recommended to purchase enough coverage so if held responsible of an accident, your properties or assets will not be compromised by any financial complications derived from it

Minimum Auto insurance liability policy establishes the following amounts:

• To pay for bodily injury per person $20,000 (twenty thousand)
• To pay for bodily injury per more than one person $40,000 (forty thousand)
• To pay for Property Damage liability $15,000 (Fifteen thousand)

It is required you must carry with you an insurance id card (issued by the carrier or insurer company) to prove that you own such liability insurance in the event of an accident. If you fail to comply with this requirement your license can be suspended and you'll lose registration privileges.

There are other coverage types available, although not considered mandatory, but commonly they are included as part of the insurance policy.
As for many other states, most popular types of additional insurance may include: collision and comprehensive, uninsured and underinsured motorist coverage. They each will provide coverage for different types of situation, so it is recommended to learn about them as much as possible before purchasing an auto insurance policy.
Collision coverage, although its name is almost self explained, there are some things you might like to learn about this coverage. This type of coverage provides you with financial aid, no matter the intensity of the accident, if it was against a tree or another vehicle. It will even cover you if the accident doesn't involve anything but your vehicle (for example tipping it over on a curve).
Underinsured and Uninsured Motorist coverage can be used for different types of situations. If you are involved in an accident on which you have no responsibility whatsoever, but the driver that caused it has no way to fulfill the financial responsibility of your expenses, this type of coverage will help you get paid quickly and later, your insurance company can settle financial implications with the driver responsible. It may also help if the driver is insured, but simply has too little liability coverage, then underinsured motorist will help you pay those remaining bills. You can also use it to compliment your liability policy if you don’t own enough coverage and the expenses are higher than the amounts you first decided on. Lastly, this versatile coverage will provide you with aid when the driver responsible for the crash simply decided not to stay around, and creates a hit and run situation.

Insurance is there to help you on those unpleasant events, and to protect your properties against lawsuits or other financial predicaments deriving from an accident. Consider it an investment, rather than an extra expense.