If my truck is paid off cash, am I still mandated to carry physical/liability?

I think you are confused.

There is liability which covers other people’s stuff that you are at fault for.

Then there is collision which covers your equipment that you were to damage.

If you are no liens against your equipment then it’s 100% fine to not have collision insurance. Liability is the bulk cost of insurance policy costs though.

 

Yes, liability insurance in the minimum amount of $1,000,000 is required unless you run intrastate only and it’s $750,000.

 

He can sue the other side to get his truck fixed if the other side is at fault.

 

If they're fine waiting a few months for a trial, and then hoping their good for it when you get a judgement. And even then you can chase them for years before you can even collect sometimes.

 

Where does this happen?

Not here.

All we can sue is the deductible.

 

If you blow a steer and hit the Guard rail or you get hit by an uninsured motorist and your truck is totaled liability wont help you .
It's a big gamble to save a few bucks .

 

Michigan is the only state I know that has that. Any O'Os that I have based there have a separate Phy/dam policy. And about 1/2 % more.