I have an older car and am looking to save some money and was wondering if it is smart to drop full coverage on this car? I just feel that I am paying for something that I will never get back if they were to get into an accident I sure wouldn't get much for it. Thanks.

To answer this question, you first have to remember the purpose and benefit of having insurance. Insurance is a way to share risk with a large number of other people. The greater the value of something, or the greater the likelihood of a claim, the greater risk of loss you have. If you have the ability to assume the risk on your own, (if the car is totaled you could replace it) then the expense of sharing the risk may not be worth it to you.

Most, or maybe all states now have no-fault laws. This is to insure the other drivers on the highway regardless of who is at fault. You will most likely always have to carry no-fault insurance.

Dru is dead-on... make sure you check your state's laws, however, since I'm in Ohio and we don't have no-fault laws. I wasn't aware that states were moving in this direction. In fact, I really hate no-fault laws, since it rewards those that drive crappy, junky cars on the road.

While you may avoid carrying property coverage, which replaces your car, you'll always, Always, ALWAYS want to carry liability coverage. You should speak with a licensed professional to determine how much liability coverage you should have. Ideally, the more the better.

I went through this recently with my wife's vehicle. The resale value of her vehicle is $3500 (1996 Civic that is in great shape). I ran a quote between full-comprehensive coverage and liability only. There was a significant difference and the amount saved in the insurance premium made it very easy to self-insure the vehicle through long-term savings.

Your best bet is to contact agents locally and request auto quotes based on your areas requirements. Local agents will have answers to all of your questions. Getting quotes from several agents will cut out the unnecessary costs to be competitive.

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I always challenge insurance companies to come up with a better quote by emailing them the other quotes and this usually gets the quote I want down a few English pounds.

Also keep in mind that dropping "FULL" coverage has nothing to do with Bodily Injury and Property Damage. I have clients who tell me "The vehicle is old so drop all my coverage to 15/30/10". I go on to explain (again) that BI/PD protect them as much as the other people they may hit.

If you injure someone or damage their property you are responsible. BI/PD help cover YOUR income/assets from those damages. Imagine having $15,000 Bodily Injury and you hit another vehicle and cause injury to those occupants (or hit a kid on a bike or motorcycle rider where death or disability could occur). Those individuals may and probably will sue you personally for any damages above fifteen grand on the BI and ten grand on the PD.

Drop full coverage (comprehensive/collision) if the vehicle's value is not worth the extra premium, just don't drop or lower your BI/PD.

And get a quote on Umbrella Insurance protection!!

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Phoenix Life Insurance / Arizona Auto Insurance

Well….I think if you wait for some more time… you can get a lot better suggestions that this…I am out of any ideas for this!!!!

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Insurance Company

Compare quotes from several insurance companies, and if the value of the car is that low consider getting only the mandatory insurance.

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Never spend your money before you have it. -- Thomas Jefferson