I'm pretty sure if a driver hits you while riding your bike, and is at fault, their insurance has to pay to repair the bike regardless of what state you live in. I don't drive around with my bike in my car very often nor am I concerned about theft so I don't consider that something I need to insure against. I agree that suing someone in court would not be worth my time for less than $1k+ in repair costs. I am including that in my cost/benefit analysis. All I can say is that in the past 4 1/2 years of riding I have certainly come out ahead financially by saving $375/yr not buying bike insurance.