When should you have liability only insurance coverage on a car? It’s a question we frequently get asked. Especially when customers have vehicles that are aging. The value of the vehicle is getting down to a certain value where the question is, is it worth paying the premium for comprehensive and collision coverage? Or should we remove that and go with liability only. What is comprehensive and collision coverage? Comprehensive coverage is what covers your vehicle if there is hail damage or you hit a deer. Collision coverage is what covers damage to your vehicle if there is an accident that is your fault. I did a blog post about comprehensive and collision that you can go to here for all the details.
When should you have liability only insurance coverage on a car?
The value of the vehicle is usually the determining factor for most customers. We usually start getting the question as vehicle approach a value of $5000 or less. At that point you have to decide if the premium you’re paying for the coverage compared to the value of your vehicle, is worth it anymore? And, it’s really up to you, the customer. But, it’s important to talk to your insurance agent, to understand what that premium savings would be.
Obviously, you’d want to keep your liability protection on that vehicle at the same limits as your other cars, and make sure you have enough protection there. But, removing the comprehensive and collision deductible may work for you, and save you some money.