s/o Comprehensive vs. Liability Insurance

[Valkyrie9]

Now that my car is paid off, I am not required to carry comprehensive insurance on it. However, I'm not sure I am comfortable just having liability...what are some things to consider when making a decision as to how to be insured? I'd say my car is probably worth in the $10-11k range, and I couldn't afford to replace it if it was totalled--I need the equity I have in it to buy another car someday.

Thoughts?

[montlake]

If you can't afford to replace it without insurance, or afford to repair damage caused in an accident then you should probably keep the coverage. Also, liability coverage is not going to do anything for you if your car is stolen.

[lisalulu]

I'd keep the comp/collisiion on it for the same reasons the pp stated.

[bc1995]

We have always kept comprehensive insurance on our paid off cars for the exact reasons you stated. We can't afford to pay cash for another one and need the equity.

[superstella]

I keep only liability on my '85 Honda Prelude, but that's because it's only worth about... oh... maybe $1000 on a good day so it's not the end of the world if it's totaled. I agree with the pps, if you need the equity or couldn't afford the repairs then keep the full coverage.

[Sharlla]

I only do liability, my car is 12 years old with a low BB value

[Alkenny]

I've heard that a good rule of thumb is that if it's worth less than $3,000 to drop the comprehensive. With yours still being worth that much, I'd keep it as it's probably not tangible that you can come up with $10,000 to replace it.

[Mosaic]

Agreed... I wouldn't think about the "equity" you have in your car; rather, I'd think of the car's value, which you could calculate by starting with KBB and adjusting that based on condition, added equipment, mileage, new tires, etc. Depending on what kind of car you have, when you bought it, it's condition, etc., it may or may not be worth paying the additional insurance premium to have comprehensive coverage.

You could be putting that same money in a CD or other savings device and earning money on it, rather than investing it in a policy that will pay you LESS for your car every day.