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Do I need full coverage on a car that's 12 years old?

I bought my Honda Civic brand new, but that was 10 years ago now. Do I still need to carry full coverage on it now that it’s a decade old, or can I switch to minimum coverage?

avatar
Sarah Gray · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
You should have a
full coverage auto insurance policy
on a 10-year-old car if you're financially unable to cover repair costs or replacement costs following an at-fault accident or total loss. 
Even with an older car, full-coverage
car insurance
offers added protection depending on where you live, how you drive, and what you drive.
If you’re hoping to lower your car insurance costs, consider the following to see if simply lowering your coverage levels would make more sense than dropping both comprehensive and collision coverage:
  • Should I drop collision coverage? If you live in a densely populated or urban area, have young drivers on your policy, or want to keep your car looking like new and you don’t have the disposable funds to pay for repairs,
    collision insurance
    is still a great choice. 
  • Should I drop comprehensive coverage? If you live in a high-crime area or a location where severe weather events are common,
    comprehensive insurance
    is a must. This is the coverage that can pay to replace your vehicle if it’s stolen or damaged in a non-collision event, like vandalism, theft, or severe weather.
  • Do you have an auto loan? Even if it’s an older vehicle, if you’re financing or leasing a car, your lender will require you to maintain full coverage.
  • Am I paying less in premiums than my car is worth? If your annual premium or your deductible is more than 10% of the car's actual cash value, it may be time to consider dropping full coverage, but only if you can shoulder the financial risk of repairing or replacing your car on your own.
If you answered yes to one or more of these questions, it’s probably not the right time to
drop your full coverage policy
entirely. Instead, consider dropping the types of coverage you no longer need, like optional add-ons or just collision coverage to lower your insurance premium. 
To see how much adjusting your coverage levels or deductibles can lower your car insurance rates, use the
Jerry
app. You’ll be able to see not only the cost of car insurance without unneeded coverage but also how much you might be able to save by switching car insurance companies.
Keep in mind: Regardless of your vehicle’s age, it’s never a good time to opt for low liability insurance limits. Liability coverage pays for property damage and others’ injuries if you’re at fault in a car accident, so payouts are based on the value of the vehicle you hit. Low liability limits probably won’t offer enough coverage to pay an insurance claim for an at-fault accident, which means you’ll be left vulnerable to lawsuits.
View full answer 
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