For those that only are covered up to the liability state minimum....why is that? I understand dropping coll/comp and the whole concept of self-insurance vs a minuscule chance of being at-fault for an accident, but one slip up from a liability perspective could cause you to lose everything. Wouldn't a few hundred bucks a year be worth that peace of mind? I would think the risk/return trade off makes sense there as the risk would certainly derail FI much more so than the cost.
Two reasons. One I already stated, two vehicle and I can only drive one at a time so I see no reason why I should be insuring a vehicle for liability when it is an inanimate object that can cause no harm or good. I will not pay twice as much. Automotive is my hobby which I will continue to enjoy into FIRE, so to any naysayers get off your high horse.
The other is I am extremely careful when driving. I accept the risk and think about it a lot, especially any time someone else id driving like a prick and may cause an accident. I'm amazed at how other are so unaware of everything around them while driving and when questioned express a disregard for safety, prudence, or accident avoidance quoting insurance as one reason not to worry. I don't have a membership card to that club.
The third reason is I do not have any appreciable stash and my net worth is negative (though nearing zero) so I'm not an attractive target for a frivolous lawsuit, given that I find it highly unlikely that I would ever do significant, if any, harm to any person or property while driving.
For what it's worth I do have my motorcycle insured under an agreed value policy. I spent a lot of time and money restoring it and given the relatively low cost of motorcycle insurance I feel it's worth the extra $100/yr (on top of about $75/yr for liability with greater coverage than my car policy) to know if anything happens I can build another one if I'm fortunate enough to be able to still be able to get parts to build a 50 year old bike and be alive after the wreck.
Also, as a reaction to this thread I quoted car insurance iwth a couple companies and found one that will save me about $250/yr. This is a BS game you have to play with car insurance switching every 6-12 months to save money. They all give a lower price for new customers but if you call saying you got a quote $100 lower they won't budge on price but tell you to call them back when you're up for renewal and they'll beat the competitor.