Because the law so demands, you must have this policy if you want to drive. But what if you know that you really won't gain from this policy? In such a case I'll advise that you buy the minimum demanded by law.

We'll look at one such situation where this applies and how to go about it for the best results...

If yours is just an old car (NOT a classic), then you only need enough insurance to get by. This is because you'll NOT get any meaningful reimbursement even if you have comprehensive and collision coverage.

Insurers will calculate your car's value at the time of a claim based on what is known as Kelly's Blue Book. The painful thing about this "book" is that, for old cars, the value is too low. Therefore, your insurer pays you nothing or close to nothing notwithstanding how high and for how long your comprehensive or collision coverage was.

This means then that getting the most extensive coverage for your old car won't do you any good.

Yes, I know we've NOT talked about the liability part of your policy. I've got it covered. You can get a lot more for less this way...

Get an umbrella policy. This will give you far more coverage from liability claims per premium dollar spent than the most extensive of auto insurance policies. Furthermore, an umbrella insurance policy will typically bankroll fully even the craziest of lawsuits and all you'd have to pay are very affordable premiums.

It could cost a 35-year old man in an area like New York City around $300 extra to raise his auto bodily injury liability coverage from $25,000/$50,000 to $100,000/$300,000. However, with an umbrella policy, he'll spend less than that to get $1 million worth of coverage. Furthermore, he could make it $2 million by just paying only about $75 more.

Furthermore, your umbrella policy will give you coverage from all liablity claims including your home and business unless otherwise stated expressly.

That said, you must still get at least the minimum required by law. And since you just want to keep the law, look for the cheapest offers. That way, you'll only pay for what you need -- Staying law abiding. Just make sure you do NOT need to file claims for your vehicle before going with this option.

To get the cheapest offers, get and obtain quotes from at least five quotes sites. And while requesting your quotes, choose the highest deductible allowed. It will help you save even more.