[Chuck Wagon]

Just bought a 2003 Toyota Prius with 92K miles on it for my wife. Sold her 2013 Subaru Outback Limited, and now I'm confused if I need full coverage insurance for a car I only paid $4500 for?

I've always had a car payment and full coverage previously, so just keeping liability seems risky? If the car was totaled tomorrow, I don't have $4500 laying around to replace this car.

Thanks in advance for any suggestions.

 

[frugalwarrior2]

I have full coverage on the van and the car. (2004 and 2007 respectively)
We live in a winter no-fault state plus I check blue book occasionally and used cars are worth so much more now.

 

[CookieLee]

I was going to drop collision / comprehensive coverage on our 2008 Mazda Protege but when I went to our policy I noticed the cost of the coverage was exceptionally low. I decided to keep the added coverage and I'm glad I did.

Later my husband hit a deer while driving that car. The insurance company looked at the car and said the repair would cost $2000 on a car that was worth only that much. They "totalled the car". Then they offered us a deal. They would write us a check for $2000 and we could use that money to buy another car or they would write a $1800 check to the auto body shop and we would be expected to pick-up the rest of the cost of the repair. We decided to repair the car and added in $600 of our own money to fix a few minor issues while it was in the shop (like replacing the windshield). The body shop declared the car restored and sent a certification of that fact to our department of motor vehicles. In short order the car was completely drive-able and FULLY insured including comprehensive again.

And our insurance premium WENT DOWN that year.

The choice was easy. We could pay $600 to get a car back that we knew or spend $2000 on a complete unknown. The car lasted another year before the transmission went kapoot so the $600 was completely worth it.

 

[mndtrp]

Full coverage on my old Tacoma wasn't much more than just collision, so kept it at full.

 

[JasonCouponKing]

I drive a 1997 Mazda protege. I bought it for $1500. No way would I pay for full coverage. The amount of money I've saved by having minimum coverage has out-weighed the value of the car. For a $4500 car, I probably would keep minimum coverage. But I bought my wife a 2011 Subaru Outback. And since that's a nicer, more valuable car, I beefed up the insurance. Not full coverage, but enough that I can recoup some expenses in case of an accident.

 

[Aunt Bea]

If it was me I would drop the collision, start building a nest egg to replace the car in the event of an accident and open or set aside an existing credit card or line of credit with a five thousand dollar limit to use ONLY in the event that you need to replace the vehicle. If you do not have a will of steel then I would not open the credit card, I would keep full coverage until the nest egg is restored.

Good luck!