The kind of self insurance you’re considering is about the worst idea I’ve heard.
First, you’re risking not only all your personal assets but also your future assets, including future income.
Next, Motor Vehicle Laws vary by State so what’s acceptable in your home State may not be in another State. So for example, if you’re driving down 95 and ticketed in my State without proof of insurance, your car will be immediately impounded and you’ll be free to find your way home on foot from the nearest exit. And that’s assuming that there’s not another issue that would want them to extend your stay.
Finally, if you actually do have an accident part of what your liability insurance covers is the cost of a decent attorney to defend you, which at $400/hour mounts up amazingly quickly. Just your first meeting and initial preparation could easily hit $4,000 so you should expect a retainer of at least $10,000 cash and if it goes to trial, well the attorney’s fees will knock your socks off.
If you want to reduce your premiums a much better idea is to shop the policy, keep a good driving record, drive a car that’s easy to insure and if you can afford it, consider increasing your deductible and reducing your comprehensive,