Full Coverage vs. Liability Only Auto Ins.
05-14-2011, 12:45 PM
#1
Full Coverage vs. Liability Only Auto Ins.
I wasn't sure where I should post this...hopefully this is the right place!
I've been debating dropping full coverage on my TSX since it's no longer required (it's been paid off for a few years now).
It has over 160k miles on the odometer and according to KBB is worth ~$9k (private party sale) in excellent condition.
Is it worth paying extra for full coverage?
If I'm in an accident and it's the other person's fault, their insurance would be the one who'd pay me and whether or not I have full coverage wouldn't matter.
If the accident is my fault, my insurance should cover the other person. I'm pretty much SOL, but that's just the way it is.
Even with full coverage, my insurance company is going to give me bottom dollar for my vehicle anyway. The money I save on insurance premiums, if kept in the bank, would eventually add up to what my car is worth (which depreciates over time anyway).
Any thoughts?
I've been debating dropping full coverage on my TSX since it's no longer required (it's been paid off for a few years now).
It has over 160k miles on the odometer and according to KBB is worth ~$9k (private party sale) in excellent condition.
Is it worth paying extra for full coverage?
If I'm in an accident and it's the other person's fault, their insurance would be the one who'd pay me and whether or not I have full coverage wouldn't matter.
If the accident is my fault, my insurance should cover the other person. I'm pretty much SOL, but that's just the way it is.
Even with full coverage, my insurance company is going to give me bottom dollar for my vehicle anyway. The money I save on insurance premiums, if kept in the bank, would eventually add up to what my car is worth (which depreciates over time anyway).
Any thoughts?
Last edited by thunder04; 05-14-2011 at 12:49 PM.
05-14-2011, 01:55 PM
#2
Team Owner
Up to you. If you have the 9k to either replace it or to use as a down payment then skip it.
05-14-2011, 06:47 PM
#3
Burning Brakes
I'd drop collision but keep comprehensive.
Not sure if the terms are the same in the US and Canada, what I mean is I'd drop the portion that covers damage to your car in case an accident is your fault, but keep the portion that covers anything that happens to your car when it's not being driven, eg vandalism, theft, flood, fire, etc, since this coverage is usually very cheap.
Not sure if the terms are the same in the US and Canada, what I mean is I'd drop the portion that covers damage to your car in case an accident is your fault, but keep the portion that covers anything that happens to your car when it's not being driven, eg vandalism, theft, flood, fire, etc, since this coverage is usually very cheap.
05-14-2011, 07:34 PM
#4
Registered but harmless
Join Date: Aug 2005
Location: Los Angeles, CA
Age: 59
Posts: 14,857
Received 1,147 Likes
on
774 Posts
Are you required to have collision coverage to get uninsured motorist coverage?
If yes, you should keep collision coverage just in case your vehicle is struck by someone without insurance.
If yes, you should keep collision coverage just in case your vehicle is struck by someone without insurance.
05-14-2011, 07:51 PM
#5
I'd drop collision but keep comprehensive.
Not sure if the terms are the same in the US and Canada, what I mean is I'd drop the portion that covers damage to your car in case an accident is your fault, but keep the portion that covers anything that happens to your car when it's not being driven, eg vandalism, theft, flood, fire, etc, since this coverage is usually very cheap.
Not sure if the terms are the same in the US and Canada, what I mean is I'd drop the portion that covers damage to your car in case an accident is your fault, but keep the portion that covers anything that happens to your car when it's not being driven, eg vandalism, theft, flood, fire, etc, since this coverage is usually very cheap.
I don't know about today, but back when I was 16 and on my parents auto insurance policy we had the California minimum plus uninsured motorist on my car. No collision or comprehensive coverage what-so-ever. It's something I'll definitely ask my insurance company about if I decide to drop collision.
05-14-2011, 09:49 PM
#7
Missing my
The amount you pay for full coverage is typically not that big of a difference. I always feel like shit happens when I try to cut corners. Maybe you should bump up your deductible to save a few bucks as a happy medium.
Trending Topics
05-14-2011, 10:22 PM
#9
I keep full coverage on all my vehicles, regardless of age or value.
Here's why: If I was involved in a collision that wasn't my fault, then absolutely it would be up to the other party to cover my losses, whether it be their own costs or through their insurance. But this is not always easy. People can be difficult to deal with, and their insurance company even more so at times. If you have collision coverage, at least in Canada, you can have your car repaired immediately whether it was your fault or not. Having collision coverage, your insurance company will pay for it. They will then go after the other party's insurance to recover their costs. And they have of course lots of qualified adjusters and dedicated lawyers at their disposal. They will fight on your behalf. Is this worth the few more dollars per year? Absolutely.
Terry
Here's why: If I was involved in a collision that wasn't my fault, then absolutely it would be up to the other party to cover my losses, whether it be their own costs or through their insurance. But this is not always easy. People can be difficult to deal with, and their insurance company even more so at times. If you have collision coverage, at least in Canada, you can have your car repaired immediately whether it was your fault or not. Having collision coverage, your insurance company will pay for it. They will then go after the other party's insurance to recover their costs. And they have of course lots of qualified adjusters and dedicated lawyers at their disposal. They will fight on your behalf. Is this worth the few more dollars per year? Absolutely.
Terry
05-14-2011, 11:09 PM
#10
I have full coverage on my car and it's been paid off for a couple years now. Mostly because of other drivers, but also because I don't think $70/month is a lot to pay for full coverage with a $250 deductible. The $20-30 more per month savings doesn't seem like such a big deal since this is my only car.
05-14-2011, 11:16 PM
#11
この道は毛むくじゃらのマンコだらけ..
Definitely keep the full coverage.
When I first got my RL 5 years ago I consulted with my mom and we decided to not go for full coverage. Reasoning for this is that I lived 5 minutes from school and was going to college in another month or so, and since I was 5 minutes away from school there should be no big problems. Right before I go to college we would switch up to full coverage.
Well, a month after owning the RL, right after finals I was tboned by a lady who ran a red light t-boning my car on the passenger side. I agree with tnobori1, cra[ always happens when I cut corners. I also got hit and runned a few weeks ago, thank god for having full coverage. I would have been out at least $2000 from my own pocket if I had the bare minimum.
When I first got my RL 5 years ago I consulted with my mom and we decided to not go for full coverage. Reasoning for this is that I lived 5 minutes from school and was going to college in another month or so, and since I was 5 minutes away from school there should be no big problems. Right before I go to college we would switch up to full coverage.
Well, a month after owning the RL, right after finals I was tboned by a lady who ran a red light t-boning my car on the passenger side. I agree with tnobori1, cra[ always happens when I cut corners. I also got hit and runned a few weeks ago, thank god for having full coverage. I would have been out at least $2000 from my own pocket if I had the bare minimum.
05-15-2011, 06:34 AM
#12
Senior Moderator
If you are concerned about cost, just increase the deductible. Full coverage is always good for the reasons stated above.
05-15-2011, 06:34 PM
#13
Hmm. These are all great points.
It looks like dropping collision will save me roughly $393 /yr if I go by the figures on my current policy. It's a decent chunk of change, but its something already budgeted for and may be worth paying to receive benefits like what has been mentioned above.
Who knows what rates will be like come renewal (in August for me). I'll have turned 25 by then (not sure if this will make much difference) and it will be my 3rd year with this insurance company and a "longevity" discount should kick in.
I like the idea of increasing the deductible instead of dropping it altogether. I think that's definitely an option if I decide I want the extra cash.
It looks like dropping collision will save me roughly $393 /yr if I go by the figures on my current policy. It's a decent chunk of change, but its something already budgeted for and may be worth paying to receive benefits like what has been mentioned above.
Who knows what rates will be like come renewal (in August for me). I'll have turned 25 by then (not sure if this will make much difference) and it will be my 3rd year with this insurance company and a "longevity" discount should kick in.
I like the idea of increasing the deductible instead of dropping it altogether. I think that's definitely an option if I decide I want the extra cash.
05-16-2011, 02:10 PM
#14
Safety Car
personally, i would never...ever...consider this. way too many idiot drivers out there with no insurance, esp. in my parts. more than half of the drivers here are uninsured.
do you have high traffic and uninsured drivers by you? if yes, i would def. keep collision.
do you have high traffic and uninsured drivers by you? if yes, i would def. keep collision.
Last edited by ThermonMermon; 05-16-2011 at 02:15 PM.
05-16-2011, 04:53 PM
#15
Three Wheelin'
Hmm. These are all great points.
It looks like dropping collision will save me roughly $393 /yr if I go by the figures on my current policy. It's a decent chunk of change, but its something already budgeted for and may be worth paying to receive benefits like what has been mentioned above.
Who knows what rates will be like come renewal (in August for me). I'll have turned 25 by then (not sure if this will make much difference) and it will be my 3rd year with this insurance company and a "longevity" discount should kick in.
I like the idea of increasing the deductible instead of dropping it altogether. I think that's definitely an option if I decide I want the extra cash.
It looks like dropping collision will save me roughly $393 /yr if I go by the figures on my current policy. It's a decent chunk of change, but its something already budgeted for and may be worth paying to receive benefits like what has been mentioned above.
Who knows what rates will be like come renewal (in August for me). I'll have turned 25 by then (not sure if this will make much difference) and it will be my 3rd year with this insurance company and a "longevity" discount should kick in.
I like the idea of increasing the deductible instead of dropping it altogether. I think that's definitely an option if I decide I want the extra cash.
05-16-2011, 05:01 PM
#16
Senior Moderator
Join Date: May 2003
Location: Better Neighborhood, Arizona
Posts: 45,641
Received 2,329 Likes
on
1,309 Posts
If you think you can invest your saved dozens of dollars per month better than a multibillion dollar insurance company, go for it.
Few people can.
Few people can.
05-16-2011, 06:38 PM
#17
Senior Moderator
Hmm. These are all great points.
It looks like dropping collision will save me roughly $393 /yr if I go by the figures on my current policy. It's a decent chunk of change, but its something already budgeted for and may be worth paying to receive benefits like what has been mentioned above.
Who knows what rates will be like come renewal (in August for me). I'll have turned 25 by then (not sure if this will make much difference) and it will be my 3rd year with this insurance company and a "longevity" discount should kick in.
I like the idea of increasing the deductible instead of dropping it altogether. I think that's definitely an option if I decide I want the extra cash.
It looks like dropping collision will save me roughly $393 /yr if I go by the figures on my current policy. It's a decent chunk of change, but its something already budgeted for and may be worth paying to receive benefits like what has been mentioned above.
Who knows what rates will be like come renewal (in August for me). I'll have turned 25 by then (not sure if this will make much difference) and it will be my 3rd year with this insurance company and a "longevity" discount should kick in.
I like the idea of increasing the deductible instead of dropping it altogether. I think that's definitely an option if I decide I want the extra cash.
05-16-2011, 06:49 PM
#18
Safety Car
05-16-2011, 06:54 PM
#19
Safety Car
so youre in a tight spot...and willing to save 4 quarters a day to risk totaling your car with no compensation. try going into a dealership with your bag of saved quarters to get a new one and see what happens.
05-17-2011, 10:42 PM
#21
I'm not hurting for money, I'm just cheap 
.
I have a decent emergency/rainy day fund, but not knowing what I may lose as far as the insurance company backing me when stuff happens isn't worth the savings.
AZine has convinced me...I'm keeping the coverage.
.I have a decent emergency/rainy day fund, but not knowing what I may lose as far as the insurance company backing me when stuff happens isn't worth the savings.
AZine has convinced me...I'm keeping the coverage.
Thread
Thread Starter
Forum
Replies
Last Post
MrHeeltoe
1G TSX Tires, Wheels, & Suspension
20
02-23-2023 01:54 PM
MrHeeltoe
2G TSX Tires, Wheels & Suspension
3
09-29-2015 10:43 PM
