I get where you’re coming from, but I’ve always been a bit hesitant to drop full coverage, even on older cars. Maybe it’s just my luck, but I’ve seen a few friends regret going liability-only after a bad accident or a hit-and-run. Granted, if your car’s only worth a couple grand and you’re shelling out almost that much every year for insurance, it’s hard to justify the extra expense. The math just doesn’t work.
That said, I think it really depends on your risk tolerance and what you’re driving around. With my last car—a 7-year-old BMW—I kept full coverage longer than most people probably would’ve. Repairs on those can get pricey, and if someone else totals it and their insurance is lacking, I don’t want to be left holding the bag. I guess I’m more comfortable paying a bit extra for peace of mind, especially since replacement parts aren’t cheap.
On the other hand, for something like an old Civic or Camry, I’d probably do exactly what you did. Once the value drops below a certain threshold, it just feels like you’re throwing money away every month. I will say, though, that uninsured/underinsured coverage is something I’d never skip, no matter what. Too many people out there driving around with the bare minimum.
It’s funny—my neighbor just had his 2012 Accord sideswiped and the other driver took off. He’d dropped full coverage a few months prior and now he’s stuck with a big repair bill. That kind of thing always makes me second-guess my own choices, but I guess there’s no one-size-fits-all answer. Just depends how much risk you’re willing to stomach and how much you’d miss the car if something happened to it.
Insurance always feels like a gamble... sometimes you win by saving money, sometimes you lose big.
Insurance always feels like a gamble... sometimes you win by saving money, sometimes you lose big.
That rings true for me. I kept full coverage on my 10-year-old Mazda until it hit 150k miles, just because I drive so much for work and couldn’t shake the feeling that “what if” something major happened. Ironically, right after I finally dropped to liability, someone clipped my mirror in a parking lot and took off. Not a huge loss, but it stung knowing I’d have been covered before. I guess for me, peace of mind is worth a little extra, even if the car isn’t new.
I know what you mean about peace of mind. I’ve always kept full coverage on my S-Class, even though it’s getting up there in years, just because the repair costs can get out of hand fast. I sometimes wonder if it’s overkill, but then I think about how a small fender bender could turn into a $5k headache. Has anyone found a sweet spot where dropping coverage actually made sense for a higher-end car, or is it just too risky?
I know what you mean about peace of mind. I’ve always kept full coverage on my S-Class, even though it’s getting up there in years, just because the repair costs can get out of hand fast.
I get where you’re coming from. That “small fender bender could turn into a $5k headache” line really hits home—luxury cars aren’t cheap to fix, even for minor stuff. Here’s how I usually break it down: First, check your car’s current value vs. your deductible and annual premium savings if you drop comp/collision. If the savings are minimal compared to what you’d pay out of pocket, it’s probably not worth the risk. But if your S-Class is worth less than, say, $8-10k and you’ve got a healthy emergency fund, liability-only can make sense. It’s always a bit of a gamble, though... I’ve seen folks regret dropping coverage after a random hailstorm or parking lot mishap.
That’s a solid breakdown. I’d just add—if you’re commuting daily or parking in public lots, the risk of random stuff happening goes up. I used to think I’d save a ton by switching to liability only, but after my friend’s E-Class got keyed and then rear-ended within six months, he was out way more than he saved. Sometimes that peace of mind really is worth the extra premium, especially with older luxury cars where even minor scrapes get expensive fast.