Yeah, the only time to skip insurance is when you're comfortable paying for another of equal value out of pocket.
EDIT: There are exceptions. Back in school when I bought my motorcycle, the bike was worth about $6K. I couldn't have afforded to simply write a check for another if I wrecked, but I skipped full coverage as it was $1800/year. I figured if I didn't wreck in the first few years, I made good on it.