I’m 22 and own a 2005 Chevy Malibu with only 63k miles. I’m getting insurance under my name and I’m considering full coverage instead of just liability. I got quoted $94 per month for full coverage with a $1k deductible, while liability only would be about $71 a month. Since winter’s coming and I want to be covered in case of an accident or damage, I’m wondering if it’s worth paying the extra for full coverage, especially since my car has low mileage but is old. Any advice on what makes sense here?
$94 - $71 = $23 per month, which adds up to $276 a year. A quick check shows the car is probably worth around $1,800 right now. To an insurance company, your car is likely valued at around $1,200. If you get into an accident, after paying the deductible, you’d only get about $200 back. If you’re planning to keep the car for 8 months or less, it might be worth it, but after 9 months, you’d have spent more on insurance than you’d get back. So I’d recommend saving the $23 a month for when you need a new car.
In my opinion, it’s always better to go for full coverage.
Rin said:
In my opinion, it’s always better to go for full coverage.
I’d say never go for full coverage though. It’s not worth it for an older car.
Full coverage won’t give you much return. If your car’s value is under $1500, you’ll get very little if it’s totaled. After paying the $1k deductible, you’d only get $500 back.
Full coverage isn’t really worth it. Even a minor accident might total the car, and after the $1k deductible, you won’t get much back.
It’s not worth it. I’d stick with liability only.
So you’d pay $276 a year, but don’t want to pay for a new car if something happens? Honestly, that might be decent. I wonder what happens if you lower your deductible to $500?
A lot of people are saying full coverage is not worth it because the return is negligible. I agree, but I think you’d be better off going for higher coverage on your liability instead.
That small difference in monthly cost is definitely worth it! Just my opinion, but I think it’s better to be safe than sorry.
The deductible is really what makes it tricky. It might seem like a small difference per month, but you’re still stuck with the $1k deductible. Since your car isn’t worth a lot, it’s probably not worth it. If your car were worth more, then full coverage might make more sense.
Since the car is old, it probably doesn’t have much value, so any collision could total it. If your car is worth $1,500 and you have a $1,000 deductible, you’d only get $500. I would really recommend lowering your deductible. In my opinion, full coverage is still worth it because it covers things like tow yard fees and provides protection if the other party is lying or uncooperative.