There is no escaping car insurance. You can’t legally have a car on the road without insurance. The only difference is the coverage of the insurance that you have for your car. The bare minimum in most jurisdictions are a 3rd party insurance which means you and your car aren’t covered, the person you have an accident with isn’t covered either but anyone independent of the crash or accident is. Keeping in mind the bare minimum is almost as good as having no insurance at all; you will understand that more comprehensive levels of car insurance is indeed very important in keeping you from financial distress when you encounter an accident.

Many people think that the way to approach car insurance is to set your mind to finding the cheapest car insurance which is still has 1st party coverage. This unfortunately is the wrong way to look for insurance. The very first thing that you should be doing is assess your own personal risk profile. You have to look at your own driving record and how likely you are to get an accident. You have to look at your driving skill and your own exposure to risk. If you deem yourself to be quite a risky person then you should look at more comprehensive car insurance products. On the other hand if you are a very cautious person with very little chance of getting into an accident then you can easily opt for insurance policies which offer less coverage and cost less.

[1] [2] [3]