Should insurance be purchased on an older car whose current market value is very low?
Most states have enacted compulsory insurance laws that require drivers to have at least some automobile liability insurance. These laws were enacted to ensure that victims of automobile accidents receive compensation when their losses are caused by the actions of another individual who was negligent. Except for the liability coverage that you are required to purchase, many people with older cars decide not to purchase any physical damage coverage. It is often the case that the cost of repairing the damages to an older car is greater than its value.
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- I have an older car and its current market value is very low - do I really need to purchase automobile insurance?
