liability or full coverage

[JHZR2]

Originally Posted By: Dakota1820
sorry it would be 55 dollars more per month I normally paid with 3 cars right at 100 dollars with still my 98 Saturn and the F 150 + the new car it would be roughly 155 bucks


So 55 more per month with full coverage on the new car?

So $660/year for the new car. Not bad with full coverage.

When was the last time you were in an accident? You can start looking at it that way too... If you can only pay $500/year with a $1000 or $2000 deductible, then the question is how many years until you hit a breakeven point.

 

[jimbrewer]

Originally Posted By: volk06
Originally Posted By: GearheadTool
Originally Posted By: volk06
Get full coverage. If you get in a wreck and total out the car your screwed and back at square one with no car, no money. If you get 1500 worth of damage, can you pay that out of pocket to fix it? The extra $50-100/ every 6 months is cheap when you look at it in that aspect. Probably cheaper than that since your married.


And if never used? is it worth it then?


What if it is used? The same can be said for ADD & disability insurance, I never hope to use it but in the event something were to happen I could stay have an income. Can you afford to replace a 6K car in the event you wreck it or more important if someone else hits you? In a few years when its not worth anything then drop it down to liability.

To self-insure is the best option but some young people starting out arent capable of being able to do that right away. So full coverage is a good option. Put a 1000 deductible on it and youll be good to go.


You just have to dope it out and get quotes. When I was a young guy, I was just eaten alive by the lender required 250 deductible. I actually got my Credit Union to allow 500 deductible as a kind of a credit union come on to borrow from them. Later, I would automatically drop my coverage to 1000 deductible for my older cars. When I bought my new car, I was shocked at how little difference there was between low deductible and high deductible policy. I would like to think it has to do with my car, but probably its because I'm getting old. Point is, you just have to check. Paying an extra 300 per year to have 200 deductible instead of 500 is kind of stupid.

 

[Kuato]

IMO Full coverage.

 

[NMBurb02]

Doing a break even analysis is key. Do you think you can go 8+ years without totalling it? The cost of the comprehensive coverage should go down as the car depreciates, so you basically just divide the insured value ($6,000 - $500 deductible = $5,500) by the coverage premium ($660) to get 8.33 years as your break even.

 

[Dakota1820]

I have been in one wreck . I went temporarily blind while on some meds the doc gave me while driving on my way to pick up my girlfriend for homecoming I have eye issues and the meds triggered extra pressure and went blind for a short period of time. I slid sideways into a tree and rolled it I was driving a 91 Plymouth sundance. Lol I was pretty hurt but didn't realize it intially . O and yes i still went to homecoming. And yes I would have done it all over again. That dance was an amazing night ...until I was spitting up blood . Ahhh good times.

the wreck was not turned into insurance though since it was my car and nothing was damaged except me the car and the tree that old man thanked me for knocking down for him lol. Sorry a lttle off topic but just reminising.

 

[clarkflower]

I knew a guy with 100's of millions
He had a big wood house from 1900 with a wood roof
I asked who did his insurance
He said he didn't have any.
I said what if it burns?
He said I'll put up another

All depends what you got

 

[clarkflower]

Originally Posted By: Quattro Pete
Originally Posted By: GearheadTool
And if never used?

If you knew that you'd never use it, you'd obviously never purchase it. But you don't. That's the whole thing with accidents - they're typically unplanned/unexpected.


Who knows the odds?
30% shot if someone else hits you they will have coverage to pay for your damage?

 

[Burt]

Originally Posted By: rjundi
If you got into a $3000 accident damaging with your vehicle would it be a big deal to come up with repair money?

If yes then look at getting insurance.

The con is cost that is it.



+1
Only get insurance to cover risks that you can't absorb. If you can make it 7 years on average between accidents you come out ahead not buying insurance. Car insurance is like repair insurance or gambling at Las Vegas, over time the house always wins.

 

[The_Jeff]

$660 a year, if you wreck your nice car you could replace it with another clunker in only a year and a half. You've been able to find a $1000 car in relatively short time if motivated. The ever nagging idea of driving some heap should motivate you to the straight and narrow. I say go without or with a $2k deductible.

 

[Pop_Rivit]

On a car that's only worth $6,000 it's not worth it to have full coverage. Put your money into higher medical limits if you're not at the maximum, or bank it if your insurance is already at the upper limits for medical.

I don't have collision coverage on any of my vehicles-the Subaru, Elantra or pickup. My personal dividing line to include collision is a $15,000 vehicle value. Below that and I prefer to save my money and self insure the collision portion. We have more than enough in our vehicle savings fund to purchase new replacement vehicles in the event they are all totaled, so I siphon off what normally would go to collision coverage and keep banking it (and collecting the interest for myself).

 

[kb01]

These kinds of decisions typically depend on your own tolerance for risk and ability to absorb a total loss. For an older car, you also want to take into consideration the KBB value, to get an idea of what you'd get if the car was totaled, minus the deductible and premiums.

I will echo what others have said...

Look into a high deductible. Unless you're insuring against catastrophic losses, it's virtually always a poor value, whether it's an extended warranty, dental/vision insurance, a comprehensive PPO, or a lower value car. Insuring against a $5,000 to $10,000 loss is a grey area and really depends on your own finances.

 

[Vikas]

I am chuckling here, JHZR2! You initial comment asked him if $55 was annual or 6-month and you thought that was not a bad deal.

When OP came back with $55 PER MONTH, you nonchalantly said "not bad"!

 

[DuckRyder]

What EXACTLY coverages?

"full" coverage doesn't necessarily mean just adding comp and collision could be med pay, un/underinsured, towing, rental and so on and so forth.

 

[rjundi]

Make sure reconsider each year if you buy extra coverage. Each year they pay less and less out if vehicle is totaled. Yet they keep the premium the same.

My guess is most vehicles drop $1000/year in value so definitely reconsider. I as floored when I asked the insurance agent the cost of insuring a 2013 MDX vs my $16k 100k+ 2007 MDX was exactly the same for full coverage. The payout is potentially triple for a brand new vs used.

 

[PandaBear]

Do you have the cash to replace the car if you lost it? If not, full coverage, if so, it is up to you. For me I'll go with liability only.

 

[JHZR2]

Originally Posted By: Vikas
I am chuckling here, JHZR2! You initial comment asked him if $55 was annual or 6-month and you thought that was not a bad deal.

When OP came back with $55 PER MONTH, you nonchalantly said "not bad"!


My first read was that the total added cost of full coverage for the year was $55. To me that is insignificant on a $6k car.

But that was stated wrong.

Then it was explained that the full cost for coverage for everything was $660 ($55/mo), which IMO is decent (depending upon coverage of course, I pay about this for million dollar coverage). $660 per year including collision/comp to me isn't bad. I'll bet that of the $660/yr, only $50-200 is actually the full coverage.

So I'm fairly consistent in a roundabout way

 

[Vikas]

Your explanation does make sense! He never gave us the difference between full coverage or liability only. If the difference is $650 for $6000 car, that sounds quite expensive. Besides, if it were to be totaled, the insurance company would likely low ball him and cut a check for $4K at the most. But if he can not self-insure, then he needs to take the full coverage. While there, make sure he has the substitute transportation and towing coverage. Usually, it only adds $25 per year to the cost and definitely worth it.

 

[JHZR2]

I thjnk he said it was $660/yr for liability with full coverage on the car.

If he could get it down $100 more for a $1-2k deductible, it's probably worth it to go higher deductible. If he is going to save $20/yr, it's not.

 

[Tdbo]

In my experience, full coverage is so reasonably priced, I don't care to be without it. For $500D on collision and $250D on liability on my 2006 Odyssey van, 2008 Mustang, and 2003 Ranger combined runs $350/year or $.96 per day. (I can save that much making my morning coffee @ home.)

Even with the 2012 Accord added in, it runs $1.62 per day. That's a large cup of coffee at the mini-mart. Not worth the risk of eating the cost of totaling out a car IMO.

 

[Vikas]

It depends upon your age, your marital status, children's age, location etc etc