New Car-Liability Insurance only- Would You?

[Imp4]

All this is is a risk assessment question.
Are you willing to risk the cost of the new vehicle versus the likelihood that it will be involved in an accident?

 

[Zee09]

I bought Personal Liability Umbrella policy that covers the family for stupid acts and losses - even libel for 1M for $134/yr.

But since loans are usually CHEAP, free money these days, I always have a loan and that cash is working for me in the Market.
During the virus maket drop in November, I saw say Goodyear (GT) trading at half it's normal price so i went in big on that and it paid off handsomely in a couple months nearly doubling in value
Enough to buy a car. Unfortunately the car I bought had a failing engine and I lost most of that value.

As Grandma from Scotland used to say, "Easy come, easy GO" !

What car was that Ken if I may ask?
Wasn't the Rogue was it??

 

[supton]

All this is is a risk assessment question.
Are you willing to risk the cost of the new vehicle versus the likelihood that it will be involved in an accident?

Indeed. I could probably pull it off where I live. My wife's car has gotten a few taps over the years--but I never repaired any of them (and no one was fessing up). In 20 years and a million miles (?!) we've not needed insurance (outside of what was required during a loan period).

Of course, all it'd take was that one time... I'm not sure I'm to the point where I can throw away a new car over a mistake. Old used one that I've gotten my money's worth out of? sure, but a new one? eh I'd sleep better at night.

 

[ARCOgraphite]

What car was that Ken if I may ask?
Wasn't the Rogue was it??

No, it was a 2011 Subaru Outback ready to go to the Auction at a Toyota dealer up the street.
Beautiful Deep blue with saddle leather - 6 speed WRX manual transmission, loaded.
It had a bit of engine clatter that these are know for, but it got worse over a short period of time, so I dumped it.
To bad it was a GREAT driving and comfortable car. only 62K miles, timing belt serviced, one owner mature Woman from Colorado coming to to visit her sister on the East coast.
The Rogue I bought new after the Nissan dealer took back my 2014 Vera Note that the engine failed on in a month.
Yes - the garbage Chinese Nissan filter to blame here. Teh one with the fibre end caps right up against the can.
Nice design - for a grenade !
- Ken

 

[Skippy722]

Comprehensive and collision is cheap insurance (pardon the pun) against the rest of society which I generally have very very little faith in. Also, suicidal deer all over out here.

 

[fisher83]

I know a guy who dropped down to liability only on a Honda Ridgeline right after making the last payment. Shortly after that it was totaled in a crash. He had what was left of his truck towed to his house where it sat in his driveway for awhile before he finally came to the realization that his minor monthly insurance savings costed him about $25k. I know another guy who lost two paid for uninsured homes in a flood. I believe he did get a very minor payout from some sort of disaster relief but it was nowhere near the value of the homes. It's a gamble. Surely a person could save a few bucks if all goes well but if something does go wrong it's almost certain to cost a lot more than what was saved on premiums.

 

[manicrodder]

Do you have the fortitude to get only liability insurance on a new vehicle.
Of course this means no loans on it. Paid off! Well????????????

Jim get a grip. Do you have several hundred thousand to blow. In addition your loan company will require it as stated above.

 

[Zee09]

Jim get a grip. Do you have several hundred thousand to blow. In addition your loan company will require it as stated above.

I always have full insurance on all my vehicles.
But no loan as noted in the post.

 

[manicrodder]

Jim get a grip. Do you have several hundred thousand to blow. In addition your loan company will require it as stated above.

When I was 18 I wanted to by a new 911. Insurance would be double my payment. NV would accept a bond so I almost did that but then I came to my senses. Mind you this was back a couple of years after the pompadour was in fashion.

 

[RooflessVW]

Not a **** chance. I have max coverage on both of my cars.

Nor will I pay off a (new) car. Take the free money from the bank and buy GAP. That way if something happens you can wash your hands of the negative equity without being out the cash.

 

[fsdork]

It's really a question of whether you would lose sleep over absorbing the replacement cost of the vehicle if something happened to it. Insurance companies make a profit, so it is obvious that premiums and deductibles exceed losses at scale.

So, would I take that risk currently? No. At a high enough net worth, yes.

 

[PWMDMD]

It could make sense at a certain value for the vehicle. For me, anything under a value of $8-10K I'd consider just liability.

 

[Yah-Tah-Hey]

Do you have the fortitude to get only liability insurance on a new vehicle.
Of course this means no loans on it. Paid off! Well????????????

That's all I have on my 04 Camry LE V6. 300,000/500,000

 

[Hall]

Liability insurance covers your mistakes that cause damage to other cars or property.

Looks like a lot of people don't know what liability insurance is for

 

[nomas]

Not after what we went through with the drunk driver that hit my wife . What wasn't damaged in the wreck , was destroyed by the rescue guys that cut the top off of the car to get her out . Other guy had NOTHING .. Zero assets , no license , no job , nothing . Her car was two years old .

 

[Wolf359]

Liability insurance covers your mistakes that cause damage to other cars or property.

Collision insurance covers damage to your own vehicle when it's your own fault.

Comprehensive covers theft, vandalism, fire, flood, animals, glass damage from debris, etc.—things beyond your control. Usually comprehensive is cheap.

Uninsured motorists' coverage covers damage to your vehicle caused by other drivers without insurance.

If you really want to cut one, cut collision. Then be prepared to pay the full cost of a replacement vehicle if your car gets totaled and it's your fault. Don't cut comprehensive.

As the OP mentions, if you have a car loan, then the lender requires you to have full insurance including at least the first three above, if not all four. You don't have a choice.

Just keep in mind that you need collision coverage to cover a hit and run. Doesn't have to be your fault. You just park the car on the street or in a parking lot and someone driving by smashes into your car and takes off. Comprehensive won't cover it. You need collision to get coverage, you just have to pay the deductible. I always carry both and both cars were paid with cash. The real cost of insurance is the mandatory stuff, collision and comprehensive is just a minor part of it.

 

[PandaBear]

Do you have the fortitude to get only liability insurance on a new vehicle.
Of course this means no loans on it. Paid off! Well????????????

I would say typically I won't get liability only until the car is below 10k worth, new car is likely not too low. These days with all the cat converter theft I would always add comprehensive even without collision to my policy.

 

[demarpaint]

Do you have the fortitude to get only liability insurance on a new vehicle.
Of course this means no loans on it. Paid off! Well????????????

The answer to the question is pretty simple: If you can afford to take the hit on a total loss without crying about it, or being financially hurt by the loss then the answer is yes. If not the answer in no.

 

[atikovi]

Although the newest thing I have is a 2013, the total value of all the cars I have is 6 figures and I have liability only except on about 3 cars on a separate collector car policy. Only a handful are worth more than $10K so I take my chances and am comfortable with that.

 

[Leo99]

On the other side of the coin, I kept full coverage on my old Rav4 with over 350,000 miles on it. Finally dropped collision when it hit about 380,000 miles.

I thought I was a wild man when I went two weeks without health insurance while changing jobs.