"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?

Answer provided by
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Shannon Martin
Answered on May 06, 2021
“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. “
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