Is there a federal law mandating auto insurance

The 12 no-fault states are Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah (plus Puerto Rico).

In these states, drivers generally can only sue the party at fault for major injuries — ones which cost more than a certain amount to treat, or cause the injured driver to miss a certain number of days of work, for example.

Whether you are currently shopping around for auto insurance, your policy is about to expire, or you're looking to save money on your current policy, it is important to understand how your policy works.Arkansas, Delaware, Maryland and Oregon also require drivers to buy personal injury protection, according to the Insurance Information Institute.Other states, such as Washington, require the coverage unless policyholders specifically reject it. Tony Shipley of Kingsport, left, and William Lamberth of Cottontown attend a House Criminal Justice Committee hearing in Nashville on Wednesday, March 26, 2014. An auto insurance policy is a contract between you and an insurance company.

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