Question: I have an older car whose current market value is very low – do I really need to purchase car insurance?
Answer: Most states such as Illinois have insurance laws that require drivers to have at least some auto liability insurance. These laws were enacted to ensure that victims of car accidents receive compensation, when their losses are caused by the actions of a negligent individual.
Often times the cost of repairing the damages to an older car is greater than its value. In these cases, your insurer will usually just "total" the car and give you a check for the car’s market value less than the deductible. Many people with older cars decide not to purchase any physical damage coverage.