Bare minimums may work with bare assets

There are a few situations when buying state minimum coverage does make sense, Higdon says. People with lower personal net worth, such as college students and those who are recently out of bankruptcy, or have little or no income, may choose to carry state minimum coverage.
"If you have absolutely no assets, are living paycheck to paycheck and need your car to drive to work, buying minimum coverage could allow you to drive your car on the road with insurance," says Ryan. "But it doesn't allow you to get much protection for yourself."
You would still be held liable in an accident that's your fault, he says.
If you do opt for minimum insurance, don't become complacent. Review your car insurance needs each year because your financial situation will likely change, Ryan says.

For example, if you buy a house or new car, you'll probably need to revisit your policies. "The right coverage for you at age 18 is probably not the right amount of coverage for you at age 40," Ryan says.