Reader’s Question:
I am purchasing a used car that is worth only a few hundred dollars. Do I still need to insure it?
Marx
Dallas, TX
Every state has financial responsibility laws requiring car insurance or the ability to pay for any damage that you will cause.
In all except for 2 states you will need to insure it. The only two states that don’t have compulsory auto insurance laws are Wisconsin and New Hampshire. Many states even require that you provide proof of insurance before you register a vehicle.
An older car that does not have much value isn’t typically insured for physical damage (collision and comprehensive coverage), but you still need to carry liability coverage on the car.
Regardless of the auto insurance you carry, you need to be financially responsible for any damage your car may cause.
Tags: advice, auto insurance, automobile
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