State Limits

• The state you live in has requirements for vehicle insurance. Virginia, for example, requires that any motorist has $50,000 in coverage for two or more people injured or killed in an accident, $25,000 for one person injured or killed and $20,000 for property damages. In New Hampshire, motorists are not required to have car insurance. Talk to a representative at a local insurance company or the Department of Motor Vehicles in your state to determine coverage requirements.
  
  

Liability

• If your old car has a low value, consider purchasing only liability insurance. This insurance meets the minimum requirements for your state and protects you against damage to property or people. It does not protect your vehicle or allow for any repairs or rentals. You can supplement your liability policy by asking for medical coverage, higher limits on payouts and rental protection. Any insurer creating a policy for you will be able to tell you how much each of these options would add to the cost of your policy.
  
  

Full Coverage

• If you want your insurance to cover repairs to your car, you can negotiate a full coverage policy. These can be expensive and you should check the value of your car to be sure the cost of the policy isn't more than the cost of getting a new car. If you select full coverage on an old car, the monetary value you get back if the car is totaled could be less than you would have saved without increasing your coverage in the first place. Full coverage policies typically cover medical care, car repair, property damage and rental cars.
  
  

Classic Cars

• If you're driving an old car that qualifies as a classic, determine whether it's covered correctly. You do not want to take out a policy that only covers the actual cash value of the car, which might be relatively low. Ask for a policy that pays out damages at stated value or agreed value. Both of these options ensure that you're getting the total amount your car is worth, instead of a much-decreased amount. Classic car insurance plans have low premiums, but you may have to meet certain requirements. Your age is a factor -- most policies require drivers of classic cars to be 25 or older. You may have to show proof that you have another car for daily driving and a garage to keep your classic car in and agree to mileage restrictions on the classic car.