My parents just gave me a Honda Civic for my birthday—which is great, but they want me to keep full coverage insurance on it. The car is 15 years old. Isn’t a liability-only policy enough?

Sarah Gray · Updated on Jan 10, 2024

Reviewed by Shannon Martin, Licensed Insurance Agent.

Whether you should have

full coverage auto insurance

on a 15-year-old car actually depends more on you and your financial situation than the vehicle.

In general, paying for full coverage when the value of your car is less than 10% of what you’re paying in collision and comprehensive

car insurance

premiums isn’t the best use of your money—finance experts call this the 10% rule. But dropping full coverage altogether may not make as much sense as adjusting coverage levels or deductibles to make your annual premium more palatable.

To see if full coverage is still right for you and your older vehicle, consider the following:

Insurance experts generally recommend full coverage (or at least

collision coverage

) for young drivers. That way, if you’re at fault in a car accident, your repairs will be paid for, less your deductible.

Most drivers can benefit from

comprehensive coverage

. If your car is stolen, damaged in a non-collision event (like vandalism or severe weather), or if you hit an animal, comprehensive insurance is what will pay to get it fixed.

If you have an auto loan, your lender will require you to maintain full coverage as part of your lending contract.

If you’re still unsure if you really need a full coverage policy, ask yourself this question: can you afford the repair or replacement costs if your car is stolen, totaled, or rendered unusable by something other than another driver’s fault? If the answer is no, you shouldn’t

drop full coverage

yet.

To keep your insurance costs affordable, consider adjusting the deductibles for your comprehensive and collision insurance and dropping unnecessary add-ons, like rental reimbursement. Plus, be sure you’re taking advantage of all the discounts you qualify for with your provider.

To see how much making some simple adjustments can lower your car insurance rates, you can talk to your insurance agent or use the

Jerry

app. With Jerry, you’ll be able to see not only your average 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 for others’ bodily injuries if you’re at fault in a car accident, so payouts are based on the actual cash value of the vehicle you hit, not the value of your vehicle. Minimum coverage 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.

MORE:

How to find car insurance for an older car

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