Auto Insurance?

Question

How should I decide whether to buy liability only or full coverage for my 11 year old Toyota Avalon? I've seen a formula for this sort of thing but now I can't find it..

Answer 1

what you shoud do is get your insurance agent or company to quote with and without..... determine how much collision and comprehensive cost you every renewal (usually every 6 months or a year) ... then find out the value of your car..... (black book, blue book, etc).... keep in mind your deductible will apply..... then say you hit a tree in your yard and the damage is 3k (which isnt difficult) you have your deductible of $500 (hypothetically) the insurance will pay the other 2500... but wait ..your car is only worth 1500 (hypothetically) so they would only pay 1000 (value of vehicle before damage less deductible)and then retain the salvage (wrecked car)... so if your premiums for collision every 6 months is $250 then after only 4 renewals (2 years) you have paid to your insurance carrier everything they would pay to you.... you have to determine if you are careful enough with managing your money if this premium is worth it........ i hope this made sense you too......

Answer 2

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Answer 3

Go on a website like kbb.com and see what the value of the car is. Keep in mind that most insurance companies do not use the Blue Book value, but it will at least give you a rough idea. Take that figure and subtract your deductible from it. Toyota cars tend to keep their value longer than many other cars. It really comes down to can you afford to buy a new car without the little bit of money that the insurance company will give you for a totalled car? If you decide to take collision coverage off the car, take the money that you reduced your premium by and put it away each month to help pay for your next car.

Answer 4

Since drivers' licenses are state-issued, this is a state matter, although the Federal Government can influence the states by threatening to withhold Federal Highway Funds (the way they did to get every state to raise the drinking age to 21). In short, there is a philosophical difference here. Driving is a priviledge granted by the State and when driving, one has a responsibility not only to himself, but to others on the road. Making auto insurance mandatory can be seen as a cost of enjoying this priviledge, part of a citizens obligations for th overall safety of others. Health care is a personal issue. Requiring a person to purchase a product for his own personal use seems to many like requiring all citizens to buy auto insurance....whether they drive or not. Somewill argue that the requirement will bring down the costs associated with the uninsured getting care in emergency rooms and so on, but the same could be said for mandatory auto insurance. Imagine how premiums would go down if all non-drivers were forced to buy policies as well. So again, there is a philosophical issue beyond the "will it bring down costs" question.

Answer 5

Personally, I'd only carry liability but I know a few people who carry full coverage and it's saved them many times. The type of car I pick are usually much older and more like junk (I don't believe in these fancy cars they are just a waste of money). If your car is very needed and it doesn't have much wrong with it AND you can afford it, you might want to take out full coverage on it. Liability doesn't work if someone hits your parked car.

Answer 6

I don't know of any formula. I would just find out how much the car is worth(not to you-but really worth). And then figure out if you get into a little bump up how much is it going to cost to get a fender replaced. A lot of times our older cars that run so well and are in really good cond., would cost more to fix than they are really worth. If it goes into the negative don't waste your money with full coverage. Then on the other hand if it is cheap enough go ahead and cover it.

Answer 7

Go online & put in separate quotes for liability only & then full coverage. Then weigh your results versus the blue book value. You may want to try getting a quote online. I am paying less than ½ of what I was before.

Go to: http://www.insureme.com/landing.aspx?Refby=615451&Type=auto

Take care,
Casey

Answer 8

Every time I've owned a (non-financed) car I come to this crossroad too! Should I? Shouldn't I?

I always play it safe and do full coverage. With the way people drive today having anything less than full is like playing russian roulette. :O(

Answer 9

if you only put liability on your car and somebody hits you you won't be covered so your better off to put full coverage on your car as that will cover everything.

Answer 10

11 year old car is not worth carrying collision ...if you count in the cost of the deductable if you get in an accident