Auto insurance

I am looking for ways to cut back and since my auto insurance policy will be up for renewal next month, I figured I consider that.  Right now I pay $575 every six months. I have a 2002 Ford Explorer.  I have $100,000/$300,000 liability limits, which I intend to keep.  If I drop the full coverage, my cost would go down by $300.  I put full coverage even though I bought used because if I get in an accident, I wanted $ to fix the car or replace it.  Not sure it is worth it though.  Opinions?

Thanks.

Comments

  • KaydeeKaydee Posts: 2,499Member
    How good is your medical insurance?  And do you have uninsured/underinsured driver coverage?
  • intriganteintrigante Posts: 103Member

    I couldn't answer your question so I looked it up. This is what I have:

    Bodily Injury Liability - $100,000/$300,000

    Property Damage Liability - $50,000

    Supplementary Uninsured Motorist - $25,000/$50,000

     

    All other options (optional basic economic loss, additional personal injury protection, residual medical payments, uninsured motorist) are not carried.

  • staresdownstarsstaresdownstars Posts: 16Member
    Because I don't have the budget yet to fully fund a repair or replace my used (and paid for) car should I have an accident, I've kept full coverage. And the lower deductible. It might save me good money right now to not do so, but I'm a firm believer in Murphy's Law and would rather be covered than risk not being covered. I did just shop around though and switched companies and got it down to $870 a year. It saved me a little money and will save me more as time goes on. (Plus it's my employer's group plan, so it's a payroll deductible.)
  • intriganteintrigante Posts: 103Member
    I have a friend who kept full coverage on her car for 20 years.  It had extremely low mileage (around $25k) so she thought she would be fine. Her car was totaled and they paid her $2500. Definitely less than she paid out over the years.  That's what has me wondering if it is a waste of money.  I think I will check out Kelly Blue Book and find out the value of my ride.
  • intriganteintrigante Posts: 103Member
    Kelley Blue Book values my car between $2,500 for a trade-in to $3,500 for private sale. I think I will drop the full coverage and stick the $600/year into a new car category.
  • KaydeeKaydee Posts: 2,499Member
    The thing to remember with liability-only is that there might be damage to you as well as to your car.  That's why I asked about your health insurance.  If you don't have health insurance or have a very high deductible, or if it only covers 80% of hospitalization, or doesn't cover ambulance services . . . all of those could be paid by comprehensive auto insurance.
  • intriganteintrigante Posts: 103Member
    I did not know that. I was in an accident two-years ago (hit by a dump truck on the highway and became part of a 5 car pile up). The truck wasn't insured as a commercial vehicle and only had basic liability. Our medical bills were paid, thankfully, but that experience is what had me change my liability from 25/50 to 100/300.
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