Question: Do I need to insure a car that's worth only a few hundred dollars?
 
Answer :
A standard auto insurance policy protects you from liability, property damage, and medical payment claims. Most states require car owners to purchase some level of liability and medical payments coverage (e.g., personal injury protection), while collision and other-than-collision (also known as comprehensive) coverage, which provide protection for damage to your car, remain optional.

If you still owe money on your car, the financing company may require you to keep this optional coverage. But if you own your car, you may want to consider skipping the optional coverage altogether, since the deductible and premiums you'll pay may amount to more than what your car is actually worth.