Auto insurance: do I really need full-coverage?

Discussion in 'Off Topic Chat' started by spiralout, Jul 13, 2005.

  1. spiralout

    spiralout TPF Noob!

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    Lately, I've been thinking that I should change my insurance policy from full-coverage to liability. I'm on my parents insurance, but I'm still paying $200/month, and it's really taking a huge chunk out of my paycheck. I've been driving for 5 1/2 years and have NEVER gotten in an accident and have only gotten 1 speeding ticket, so I'm not a high-risk driver, and I don't see why I should be paying so much for insurance if I'm not even using it. Any thoughts?
     
  2. Alison

    Alison Swiss Army Friend Supporting Member

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    I think it all depends on what would happen if your car gets wrecked. Unfortunately even if you get hit by another driver it's possible that they won't be insured and you'll end up having to pay for it. Right now we have two of our cars fully insured and one liability only (we're going to be selling it). The deciding factor for us was what would happen if the car was totaled or required a lot of repair, could we afford it?
     
  3. spiralout

    spiralout TPF Noob!

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    Yeah, I'm not sure how much car repair would be, but I've probably already spent well over $5000 more than I would have with just liability. I'm sure I'd have to get in a pretty bad wreck to have to pay that much for repair. That's half what I paid for my car.
     
  4. Big Mike

    Big Mike I am Big, I am Mike Staff Member Supporting Member

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    That's about it...could you afford to fix it, if you did ding it up? or would it be worth it?

    If you are driving a nice vehicle that would cost a lot to fix (if in an accident) or if it's in good condition and could still be sold for a good price...then collision insurance might be a good idea. Think of it as protecting your investment. If you are making payments on it...the insurance is either required or a really good idea.

    Typically, I have not had fire/theft/collision on my cars...as they were mostly pieces of junk. When I was younger, I was paying $300 a month (liability only) for insurance on a car that was only worth $300. That really sucked.

    Do you have your own car? or do you drive your parent's car? If you have your own, I suggest that you shop around for a better deal. I finally outgrew the bad marks on my driving record and got insurance with a group policy through my professional affiliation...now my insurance is rather reasonable. Although that doesn't stop me from thinking the whole insurance industry is just a big scam. :roll:
     
  5. spiralout

    spiralout TPF Noob!

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    I own a '99 Ford Taurus that I bought used for $9000. I probably should shop around, but that's one of those things I never really got around to... although I'm probably going to check that out tomorrow. This policy is really eating a hole in my pocket. And I agree, insurance is a scam, and they can get away with it because auto repair is an even bigger scam. ;)
     
  6. graigdavis

    graigdavis TPF Noob!

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    I was paying $180 a month with one company. I switched to Progressive and got the same coverage for $350 for 6 months ($60 a month).
     
  7. photogoddess

    photogoddess TPF Noob!

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    I think you're paying WAY too much and need to price shop a bit. My 16 year old son is on my policy, drives a restored 1971 Pontiac Firebird with full coverage (100/300/50) and uninsured coverage for less than $90 a month. Although it is an older car, it is technically a sports car. I'm thinking that I got off light with his insurance costs.
     
  8. Big Mike

    Big Mike I am Big, I am Mike Staff Member Supporting Member

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    Will you be my Mother? :lol:
     
  9. photogoddess

    photogoddess TPF Noob!

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    Hahahahaha - I don't think I could afford another child that wanted expensive cars (toys) to drive.

    My 15 year old son has a 1964 Nova that is getting restored now and my 13 year old daughter has a 1967 Pontiac Firebird convertible getting ready for her to drive when she turns 16. Maybe my kids are a little too spoiled. :roll:

    Spiralout - good luck on your price shopping. I'd stick with the full coverage though.

    Just for BigMike, here's a pic of the 71 Firebird. :D
    [​IMG]
     
  10. Andrea K

    Andrea K TPF Noob!

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    im 16 and im paying roughly 2100 a year on my mom's policy. it was about 2400 but because of a driver's ed discount and good student discount it went down a bit. ('95 bmw 530i)
     
  11. Big Mike

    Big Mike I am Big, I am Mike Staff Member Supporting Member

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    That's a beauty.

    I've always though that a teenager's first car should be a junker. That way they learn to appreciate & take care of their cars. (especially important up here, where a stalled car can mean freezing to death). Also, I think it's better to learn to drive with a junker, especially with the icy roads in winter. I've seen so many 16 year olds smash up their brand new cars.

    Of course, I never had the chance to own a car like those ones, when I was a teenager... :drool:
     
  12. Aoide

    Aoide TPF Noob!

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    $200 a month sounds really expensive. I'm paying about $70 a month.

    The biggest thing as ever one has said is can you afford to fix the car if something happened to it. Accidents happen whether you are a good driver or not. Consider where you are living, how far you have to drive to school, how much do you drive around the city? Once school starts do you stay on campus or do you drive around a lot. All things to think about. But I think you are best served in shopping around and getting some new insurance.

    As a personal side note, I was so thankful for my insurance after Tropical Storm Allison. It paid for all of my car repairs which were $1600. That's not a lot compared to other people losing their cars and their homes, but there is no way I would have been able to pay it. So in that instance I was glad for the full insurance.
     

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