"Should I have full-coverage or liability-only insurance on an old Honda Civic? "

I own a 2010 Honda Civic with 126,000 miles that's worth around $5,000. I am paying $718 every six months for full coverage with $500 deductibles. Liability-only coverage with the same insurance carrier costs $491 every six months, saving me $454 a year. What would you do?

“This is the question that every car owner faces at one time or another. When should you remove the collision coverage and comprehensive coverage from your owned vehicle?
It is tempting to look at this from a purely mathematical perspective, but there are many other factors to consider:
  • Is this your primary vehicle, driven daily, or a rarely driven second car?
  • Do you rely on this vehicle to fulfill your obligations (work, errands, picking up the kids, etc.)?
  • Would you be able to easily replace this vehicle if something were to happen?
  • Are you a safe driver with a clean driving record?
Regardless of how you answer these questions, consider that if you were to keep the money that you save on your insurance from removing the full coverage, it would take you 11 years to save enough to equal the current value of the vehicle.
If you do need to reduce your expenses, consider removing coverage as a last resort. “
Shannon Martin
Answered on May 06, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.

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