full insurance coverage for older car?

[slohc]

currently im driving a 96 civic and i've been paying about $90/month=$1080/year. for full coverage. is it worth it to keep full coverage or go down to just one way and be around 50-60/month. pros and cons would help. thanks

[FiveFreshFish]

If you have a crash where the other guy is at fault, you have to deal directly with his insurance company if you have no collision coverage. If you have collision coverage, then your insurance company does all the legwork.

[guessboi]

^ +1

Also Pro
Hit and Run, you are covered under Collision
At Fault Collision, you are covered under Collision
Vandalism, Hail, Theft, etc - you are covered under Comp

Con
You pay more

Is all about personal preference and risk tolerance.
Section C is a gamble / peace of mind. :D

[Masked Bandit]

What I usually do with my clients in this situation is sit down and compare the cost of the coverage (plus deductible) with the value of the car. I don't know what your 1996 Civic is actually worth but I'm guessing you have a pretty good idea. I'm also going to assume you have a standard $500 collision deductible. If your collision coverage is costing $250 a year in premium you are actually spending $750 to protect that car. If you are at fault for a claim OR if it's hit & run you are subject to your deductible so that has to be factored in as well.

If you're in an accident where the other guy is at fault then you don't pay your deductible but in theory you shouldn't need the collision coverage anyway since the other guy's company will be paying the tab. With that said, a lot of people aren't comfortable handling their own claim either so there is some value there.

The last factor to consider is your personal financial situation. Is saving that $20 or $30 a month going to make a real world difference in your day to day life? It may, it may not. However, if your car is demolished and there is no insurance coverage, do you have the financial means to go out and buy another equivalent vehicle? If you do then I say it's worth going down to PLPD. If not and you really need your car (single parent for example) then you're better off keeping the full coverage in case something happens. You can't assume nothing will ever happen. It may, it may not.

There really is no right or wrong answer here because what's prudent for one person can be completely unrealistic for someone else depending on the rest of their financial picture.