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Car Insurance coverage question...

Make sure you own the car outright, otherwise you may violate your financing.

I dropped full coverage on my older car when the deductible ($500) plus the difference in insurance (another $500) was more than half the car's realistic trade-in value.
 
when it's not worth fixing your car. However, if you were to get injured. you better have health insurance, cause part of full coverage cover bodily injury to you and your passengers.
 
Originally posted by: Electric Amish
At what point do you think it's wise to change from Full Coverage to just Liability coverage on a vehicle?

tia

amish
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When you're ready to accept the possibility that if your car was damaged or totalled and you'd be willing to bear the full cost. Note: If your vehicle is totalled, it can be deducted from your taxes as an uninsured casualty loss.
 
Originally posted by: DWray
I dropped full coverage on my older car when the deductible ($500) plus the difference in insurance (another $500) was more than half the car's realistic trade-in value.
Click to expand...

that is a pretty good rule of thumb

basically , once its paid off, it just depends on your risk tolerance and what you would do/be able to do for transportation if you get your car wiped out

if you have enough savings that you could buy another car, then go liability only.
if you have other cars you could drive , then go liability only
if you could ride a bus/bike or bum rides with friends until you got a new car, then go liability only.
 
Since FULL COVERAGE with comp & collision (car rental, towing, roadside assistance) is $76/mo for me I'll be keeping FULL COVERAGE indefinitely.

If I had a pre-1995 car I'd consider getting liability only.
 
I've been looking into this too, and I'm still undecided. Hear me out...

1) I have two older cars, a 94 and a 96 that are each worth maybe $3000 private party, or $1500 trade-in.

2) If I dropped the full coverage on them, I will save a measly $275 every six months. Or $45/month.

3) I have a $500 deductible on both trucks.

Here's what the insurance company told me:

If I drop the coverage and I get into a wreck, then I'm on my own.

If I keep the coverage and I get into a wreck, most likely they will total the vehicle. I've read most insurance companies will consider the vehicle totalled when the repair cost reaches 50-75% of the value of the vehicle. The insurance company pays you off, then salvages the vehicle for parts and sometimes gets more money back.

Anyway, they're gonna tell me my truck is worth $1500 so they will total it and give my $1000, which is the value minus my deductible. I'm left with $1000 to purchase a replacement vehicle. Sucks. As time goes on, the value of my truck decreases, so does the amount the insurance company will give me.

So at some point, it's better for me to save the money I would pay for the full coverage. And bank it in preparation for buying a replacement vehicle.

Is this right?
 
Originally posted by: propellerhead
I've been looking into this too, and I'm still undecided. Hear me out...

1) I have two older cars, a 94 and a 96 that are each worth maybe $3000 private party, or $1500 trade-in.

2) If I dropped the full coverage on them, I will save a measly $275 every six months. Or $45/month.

3) I have a $500 deductible on both trucks.

Here's what the insurance company told me:

If I drop the coverage and I get into a wreck, then I'm on my own.

If I keep the coverage and I get into a wreck, most likely they will total the vehicle. I've read most insurance companies will consider the vehicle totalled when the repair cost reaches 50-75% of the value of the vehicle. The insurance company pays you off, then salvages the vehicle for parts and sometimes gets more money back.

Anyway, they're gonna tell me my truck is worth $1500 so they will total it and give my $1000, which is the value minus my deductible. I'm left with $1000 to purchase a replacement vehicle. Sucks. As time goes on, the value of my truck decreases, so does the amount the insurance company will give me.

So at some point, it's better for me to save the money I would pay for the full coverage. And bank it in preparation for buying a replacement vehicle.

Is this right?
Click to expand...


You're correct on all points except that most insurance policies read they'll pay you "Actual Cash Value" which means retail value, not wholesale or trade in. ACV means what your car is being sold for in the newpaper and on the lots the day that your loss happened. Also, most states designate cars as a total loss around 80% of ACV.
 
When you're financially able to replace your vehicle when/if needed/at any time, you're fine for liability only.
 
1) I have two older cars, a 94 and a 96 that are each worth maybe $3000 private party, or $1500 trade-in.

2) If I dropped the full coverage on them, I will save a measly $275 every six months. Or $45/month.

3) I have a $500 deductible on both trucks
Click to expand...

Uhhh, I'd just go with basic coverage. That "measly" $275 every six months is actualy $550 for a year. In two years that's $1100. Add in your $500 deductable that you'd have to pay and that's all you are going to get anyway. In two years you will have paid more for the coverage than what you will actually get out of it.

I also look at my driving skills as well - if I get into a wreck, there is a VERY high possibility that it's because some jackass hit me...not vice versa. I'll wager my driving skills against someone elses any day. If they hit me - they pay. I don't have to cover it so no need for full coverage. The only thing I have to worry about is hit and runs or parking lot door slams. But on a $1500 car...do you really care?

If it were my cars - I'd save the $$ and dump the full coverage.
 
Cool. I rechecked the retail value of my trucks. $4000 and $5000.

So basically, I'm paying an extra $45/month so I can get $3500 or $4500 back from the insurance company if one of those trucks gets totalled. I think that's worth keeping the coverage for now. It will take 4-5 years of saved insurance premiums to get that amount.

I guess I'll wait a year or two and reevaluate this.

 
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