Do I Need Car Insurance For A Cheap Car
Reader’s Question:
I have a vehicle that is only worth a few hundred bucks, do I still need to get car insurance for it?
Michael
Orlando FL
Each state has financial responsibility laws entailing either insurance or the ability to pay for any damage caused while driving. This page summarizes the insurance requirements in your state.
In all except 2 states, you will have to insure your car. It is only in New Hampshire and Wisconsin which do not have compulsory insurance laws. Most of the states really require that you show proof of insurance before you register a car.
An older car that does not have much value is usually not insured for physical damage, that is comprehensive and collision coverage. However, you still must have liability coverage on your car.
Despite the insurance you hold, you must be financially responsible for any damage your car may cause.