Choosing between basic liability and full coverage for your first car - what did you go with?

For me, it felt like paying for peace of mind that didn’t really match the car’s value anymore.

I get where you’re coming from, but I kept full coverage on my old Corolla after ten years. Not because the payout would be huge, but because I live in a city where hit-and-runs are way too common. I just didn’t want to risk getting stuck with a busted car and no way to fix it. Guess it depends on where you park and drive, too.

I just didn’t want to risk getting stuck with a busted car and no way to fix it.

Man, I feel this. My first car was a ‘99 Civic that already had more dings than paint, but after my third fender bender (none my fault, swear), I realized liability just wasn’t cutting it for me. I’m not proud, but my parking luck is terrible - side mirrors are like magnets for trouble. Full coverage felt expensive, but cheaper than replacing a door out of pocket. Sometimes you just gotta do what keeps your wallet safe, even if the car’s not worth much.

Sometimes you just gotta do what keeps your wallet safe, even if the car’s not worth much.

Honestly, that’s the realest thing I’ve read all day. I used to think, “Eh, it’s just a beater, why bother?” Then a rogue shopping cart took out my headlight and suddenly I’m Googling how to DIY a fix with duct tape. Full coverage stings at first, but man, it’s like buying peace of mind for all the dumb stuff you can’t predict. If your luck’s anything like mine, it’s worth every penny.

I’m right in the middle of this debate myself. Just bought my first car (it’s a 2008 Civic, nothing fancy), and I keep going back and forth between liability and full coverage. I get what you’re saying about peace of mind - like,

“it’s like buying peace of mind for all the dumb stuff you can’t predict.”

Here’s how I’ve been thinking about it, step by step:

1. I looked up what my car’s actually worth. Turns out, not a ton. Like, if it got totaled, the payout wouldn’t be huge.
2. Then I priced out both options. Liability is way cheaper, but full coverage almost doubles my monthly payment.
3. Next, I tried to imagine the worst-case scenario - like, if someone sideswipes me or a tree branch falls on it (which actually happened to my neighbor last month). Would I be able to pay for repairs or replace the car out of pocket? Honestly, probably not without dipping into savings.
4. I also checked if I have any backup transportation if my car’s out of commission. Not really - public transit here is a joke.

I’m leaning toward full coverage for now, even though it stings a bit financially. Maybe once I’ve built up some savings and the car’s worth even less, I’ll switch to liability. But yeah, it’s weird how you start off thinking “it’s just a beater” and then suddenly every little thing that could go wrong starts running through your head.

One thing I’m still not sure about: is there any point where full coverage just isn’t worth it anymore? Like, is there a magic number for car value where you just drop it? Still figuring that part out...

Liability is way cheaper, but full coverage almost doubles my monthly payment.

I get where you’re coming from - peace of mind is a real thing, especially when you’re just starting out. But honestly, with a 2008 Civic, I’d argue you might be overthinking the full coverage part a bit. I know it feels weird to risk it, but at a certain point, the math just doesn’t add up.

I’ve got a car that’s… let’s just say, on the other end of the price spectrum. Full coverage is a no-brainer for me because repairs or replacement would be a nightmare out of pocket. But with your Civic, “if it got totaled, the payout wouldn’t be huge,” like you said. That’s the key right there - if your annual full coverage premium is close to 10% or more of your car’s value, it’s probably not worth it anymore. For a beater, liability is usually enough unless you literally can’t afford to lose the car tomorrow.

I get the anxiety about parking lot incidents. But sometimes you’re just paying a lot to insure something you could (painfully) replace. I’d stash the difference in a “car emergency” fund and switch to liability sooner rather than later.