Am I carrying too much insurance on a five-year-old car?
My car is five years old and has the same limits now as it did the day I bought it. I have liability limits of 100/300/50 with matching uninsured motorist coverage and $1,000 deductibles. Am I carrying too much coverage?
Answer provided by
Answered on May 12, 2021
“The limits of 100/300/50 are the most recommended coverage limits. The age of your car has little to no influence on the liability coverage limits you should carry on your car insurance.
The liability coverage should be determined by how much protection you need for your assets, things like your car, home, 401(k), and retirement plans. Your current limits work well for most people, but it is good to re-evaluate them from time to time.
The collision coverage and comprehensive coverage are what will change over time as your car gets older. A 2016 vehicle in good condition still has a lot of value left; seven model years old or older is where the car’s actual cash value starts to decrease more drastically.
At that point, you will want to determine if keeping collision coverage is worth it, and this decision is different for everyone. “
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
"How long does it usually take to receive the first bill for an auto loan? "
"I bought a new Ford Bronco at the beginning of the month, but I have not received a bill for my first payment yet and I am not sure how to pay. I called the lender listed on the agreement that I signed at the dealership, but they do not have my information. Should I be concerned? "
May 05, 2021
Can I cancel my current auto insurance policy and just use the coverage from my credit card company while I travel?
I will be traveling for the next six months and using a rental car for most of that time. Since Visa will offer collision coverage, can I just cancel my regular insurance policy?
May 06, 2021
What can I do when the other person’s insurance company won’t accept liability for an accident because of a missing statement?
"I have liability only insurance on my Oldsmobile 88. I was in an accident with a drunk driver who fled the scene, but the police got him a block away. His insurance denied my claim because the driver never gave them a statement. What can I do?"
May 13, 2021