Should I worry about carrying the minimum liability coverage on my $3000 vehicle?
I am a full-time student, working part-time. I currently am insured (with minimum liability in Wisc.) and was involved in a no-fault accident (no claims filed with my insurance company). I have purchased another used vehicle for $3100. I have 2 moving violations on my record so I already pay a high insurance premium. I carry the minimum liability as I am a poor student (with no assets). If I were sued for being under-insured, you can't get blood from a rock.
You are exactly right. Since you do not have any assets and you are not financing a vehicle, you only need liability coverage. Another reason you would only want to carry liability is the value of the vehicle. If you have full coverage, your rates will likely double and then you would also be responsible for the deductible in the event of a claim. You would likely pay more for full coverage than the insurance company would pay out on the claim. Good luck and if you have any questions, don't hesitate to ask. Bear in mind, you can still be burdened with debt if you cannot pay for the damage you cause.