Answer: C. It is required by law in any state in America.
Step-by-step explanation:
Most states (but not all) require liability insurance at minimum. This covers injury and property damage to the person you accidently hit. It likely does not cover you personally so you'd need other insurance for that.
States like Iowa, New Hampshire, and Ohio offer exemptions from insurance if you can show you are responsible with money. Meaning that if you have a steady income and are smart with money, then you likely would be able to pay off any future accident without needing insurance. Though the damages might get wildly expensive, so a liability policy isn't always a bad thing.