Paying off car. Should I adjust insurance coverage?

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July 05, 2019, 09:17 AM

erj_pilot

Paying off car. Should I adjust insurance coverage?

My vehicles...full coverage on paid-off 2011 Venza. Liability only (for the most part) on paid off 1997 Corolla DX. Like others have said, crunch the numbers, but I'd say your car has to be quite a bit older before carrying liability only starts to pay off; maybe 10 years or more.

"If you’re a leader, you lead the way. Not just on the easy ones; you take the tough ones too…” – MAJ Richard D. Winters (1918-2011), E Company, 2nd Battalion, 506th Parachute Infantry Regiment, 101st Airborne

"Woe to those who call evil good, and good evil... Therefore, as tongues of fire lick up straw and as dry grass sinks down in the flames, so their roots will decay and their flowers blow away like dust; for they have rejected the law of the Lord Almighty and spurned the word of the Holy One of Israel." - Isaiah 5:20,24

July 05, 2019, 10:09 AM

220-9er

Look up the cars value and subtract the deductible to see what you'd net from a total loss.
Then calculate how much time paying the premium would equal that number.

July 06, 2019, 10:39 AM

gpbst3

Double check the liability coverage. Will you loose medical coverage on yourself? If you are at fault for a crash and have injuries you may be out of luck.

Also check your state laws. In PA you cannot sue for "pain and suffering" claims if you do not have full tort coverage.

July 06, 2019, 11:21 AM

smithnsig

quote:
Originally posted by selogic:
quote:
Originally posted by jezsuiz:
I keep full coverage on mine. The difference is about $10 a month for me.
But is your vehicle worth what you pay in insurance ? Right now my Mom pays full coverage ( $150/month) for a car that is only worth about $1600 if she were to sell it . It doesn't take much of an accident to exceed $1600 in damages these days . BAD situation but she will not reduce her coverage . There is no one size fit's all answer . Every situation is different .

She needs to find another insurance company.