so I'm going to be buying a new car like you all know for about 6000 dollars i was wondering is that worth putting full coverage on it or liability only I've always only have liability so I never really thought a lot about full coverage what do you guys think pros cons give me any info on the subject
liability or full coverage
- Thread starter Dakota1820
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Are you paying cash or getting a loan? Generally if you are getting a loan, the bank or lending agency will give you no option but to have full coverage.
I have full coverage on my cars, even the 95 Mustang which I have a rifle that is worth more.
At least for me, the price difference is negligible.
I have full coverage on my cars, even the 95 Mustang which I have a rifle that is worth more.
At least for me, the price difference is negligible.
Originally Posted By: Dakota1820
so I'm going to be buying a new car like you all know for about 6000 dollars i was wondering is that worth putting full coverage on it or liability only I've always only have liability so I never really thought a lot about full coverage what do you guys think pros cons give me any info on the subject
Liability only. The insurance company ain't your friend.
so I'm going to be buying a new car like you all know for about 6000 dollars i was wondering is that worth putting full coverage on it or liability only I've always only have liability so I never really thought a lot about full coverage what do you guys think pros cons give me any info on the subject
Liability only. The insurance company ain't your friend.
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.
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?
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?
Get a $1,000 deductible.
If you are financing it you will need full coverage.
Otherwise you need to ask yourself if you could afford to take the hit if it was stolen, totaled or had significant damage (not hard to easily incur an expensive repair)
You may want to consider full coverage but with a high deductible ($1000).
As for GHT's comment that insurance companies "arent your friend". For most of us who are sensible drivers there should not be a situation where you need to make frequent claims. Insurance companies are just like any other company and are in it to make a profit. Using simple actuarial tables, your driving history and other factors (type of car,location, usage, where the car is parked) they determine the likelihood of you making a claim and base your premium on that.
I would also investigate having both homeowners (or renters) and your auto insurance with the same company. Most offer significant discounts with (2) or more lines and also offer discounts for semi annual billing (versus monthly installment) and electronic payment.
Otherwise you need to ask yourself if you could afford to take the hit if it was stolen, totaled or had significant damage (not hard to easily incur an expensive repair)
You may want to consider full coverage but with a high deductible ($1000).
As for GHT's comment that insurance companies "arent your friend". For most of us who are sensible drivers there should not be a situation where you need to make frequent claims. Insurance companies are just like any other company and are in it to make a profit. Using simple actuarial tables, your driving history and other factors (type of car,location, usage, where the car is parked) they determine the likelihood of you making a claim and base your premium on that.
I would also investigate having both homeowners (or renters) and your auto insurance with the same company. Most offer significant discounts with (2) or more lines and also offer discounts for semi annual billing (versus monthly installment) and electronic payment.
I will be paying in cash so I don't have to have a loan
I have full coverage on my S-10.
JHZR2
Staff member
How much money can you budget for repairs on top of the $6000 acquisition? How fast could you save up another couple thousand dollars?
Once you answer these two questions you can determine just how high of a deductible you can afford.
Then call the insurance company and see how much money for coverage costs at the different deductible levels.
You'll probably find a sweet spot someplace in there.
If I was buying a $6000 car I would probably not put full coverage on it. But I can afford to self-insure $6000 car or a more expensive car than that. On the cars that I have full coverage I generally keep a $2000 deductible, because in my view insurance is really only for the highly expensive things that I don't want to pay out-of-pocket not puddly repairs that I can pay for myself. When you use insurance the cost will go up.
So do a little bit of searching for the costs sometimes insurance companies will give you a rough cost on just a given car from a given year even without the Vin number. So you may be able to play around and do the analysis yourself on a few different cars and that may actually help you to decide which car has the best overall long-term cost.
Once you answer these two questions you can determine just how high of a deductible you can afford.
Then call the insurance company and see how much money for coverage costs at the different deductible levels.
You'll probably find a sweet spot someplace in there.
If I was buying a $6000 car I would probably not put full coverage on it. But I can afford to self-insure $6000 car or a more expensive car than that. On the cars that I have full coverage I generally keep a $2000 deductible, because in my view insurance is really only for the highly expensive things that I don't want to pay out-of-pocket not puddly repairs that I can pay for myself. When you use insurance the cost will go up.
So do a little bit of searching for the costs sometimes insurance companies will give you a rough cost on just a given car from a given year even without the Vin number. So you may be able to play around and do the analysis yourself on a few different cars and that may actually help you to decide which car has the best overall long-term cost.
I take the risk on my Jaguar. It's paid off handsomely. My car is now worth about 3K. And, at no point did I pay the thieving insurance company a dime for "full coverage".
Over 10 years of ownership, I've spent about $10,000 less money. Over the last 30 years of my driving career, I've had a couple of minor body shop jobs, but I am many 10's of thousands ahead.
I'd have to total a $30,000 car tomorrow to be even...
It's always cheapest in the long run to "self insure".
Over 10 years of ownership, I've spent about $10,000 less money. Over the last 30 years of my driving career, I've had a couple of minor body shop jobs, but I am many 10's of thousands ahead.
I'd have to total a $30,000 car tomorrow to be even...
It's always cheapest in the long run to "self insure".
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.
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.
JHZR2
Staff member
Originally Posted By: Cujet
It's always cheapest in the long run to "self insure".
Totally agree, and this has been my experience too.
I keep full coverage on our most expensive vehicles really just so that we have more teeth legally in terms of the insurance going after someone else. We keep the highest deductible though.
Where this argument falls short is someone starting out without much income, in school, with two kids.
The extra few hundreds of dollars he will pay on an older car may well be worth it in terms of financial stability in case of a major loss.
Its still smart for him to have $1000 emergency fund in place, and then put the deductible at $1000, or even better, more for both.
Making small dollar claims on car insurance is IMO stupid. Its only good for him in his current position because a $6000 loss isnt hard to do when minor damages can cost thousands...
It's always cheapest in the long run to "self insure".
Totally agree, and this has been my experience too.
I keep full coverage on our most expensive vehicles really just so that we have more teeth legally in terms of the insurance going after someone else. We keep the highest deductible though.
Where this argument falls short is someone starting out without much income, in school, with two kids.
The extra few hundreds of dollars he will pay on an older car may well be worth it in terms of financial stability in case of a major loss.
Its still smart for him to have $1000 emergency fund in place, and then put the deductible at $1000, or even better, more for both.
Making small dollar claims on car insurance is IMO stupid. Its only good for him in his current position because a $6000 loss isnt hard to do when minor damages can cost thousands...
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.
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.
it sounds like full coverage is the best idea for my situation I already priced it a little bit and it's a 55 dollar increase versus having a liability vehicle at a 500 dollar deductible
JHZR2
Staff member
Originally Posted By: Dakota1820
it sounds like full coverage is the best idea for my situation I already priced it a little bit and it's a 55 dollar increase versus having a liability vehicle at a 500 dollar deductible
$55 isnt bad. Is that 6 months or a year? How much is the premium?
Id price it at $1000 and $2000 deductible... If its $55 for $500 Im not sure its worth it to scrimp on higher deductible. On some high value cars, the difference can be worth it.
Just remember not to use it unless the damage is over, say, $1500-$2000. They will try to recoup a lot of what they pay in terms of policy increases and surcharges.
it sounds like full coverage is the best idea for my situation I already priced it a little bit and it's a 55 dollar increase versus having a liability vehicle at a 500 dollar deductible
$55 isnt bad. Is that 6 months or a year? How much is the premium?
Id price it at $1000 and $2000 deductible... If its $55 for $500 Im not sure its worth it to scrimp on higher deductible. On some high value cars, the difference can be worth it.
Just remember not to use it unless the damage is over, say, $1500-$2000. They will try to recoup a lot of what they pay in terms of policy increases and surcharges.
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
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