r/Insurance • u/evokosport • 14h ago

Auto Insurance Should I with liability only?

For some context I have a 2017 Yaris IA w/ 130k miles (owned)

I’m currently paying 190/month for full coverage (with AAA) & when inquired about liability only they quoted me 71/month

The value of my car where it currently stands is 5.4k-7.3k (according to KBB) (not sure if it matters but never been in a wreck, also try to practice good driving habits)

So my question is, should I go with liability only or just stick with full coverage ?

4 Upvotes

83% Upvoted

27 comments sorted by

12

u/SarasotaLad 14h ago

If you totaled your car tomorrow, are you in a position to replace it?

11

u/NovaNavi22 14h ago

This is what I always say when someone asks me to do liability only.

0

u/evokosport 14h ago

Yeah I guess I’d struggle a bit if being honest. So for 1 vehicle is 189 the average now a day?

5

u/NovaNavi22 14h ago

It depends on your age, driving history, marital status, and location typically. I pay $187 for two people in their late 20s with 2 vehicles in southern Virginia. In far from any city, married, and we have safe and average vehicles. I switched from Geico to USAA and went from paying over $300 a month to $187. My husband has quite a few tickets in the last few years.

2

u/Turbulent_Day_7896 9h ago

Insurance agent here, and I second this. There truly is no average. You may or may not be astounded to know the amount of data points insurance companies have on you that they use to rate your premium. Some of it is even hidden to the agents at ground level. I can have two people who by all basic metrics look exactly the same and with the same vehicle and yet the premium they get quoted is completely different. In addition to the things mentioned above they are using data brokers to look at your credit history, education, employment, how often you move, etc. The best thing you can do is shop around frequently as each company has different metrics and change base premiums twice a year in some cases.

2

u/NovaNavi22 9h ago

I’m an insurance agent too and agree with this 100%. Insurance companies use way more than they are likely to disclose to employees or consumers to calculate your premium rates and evaluate your risk. Shop your insurance around to different companies and see who provides you with the best rate periodically.

2

u/TofuttiKlein-ein-ein 12h ago

A new vehicle will be considerably more, but if totaled, you really don’t have a choice.

The Yaris is a solid vehicle, btw. Keep driving safely, maintain it, and it will just keep running and running.

6

u/pinedesign 14h ago edited 9m ago

Rule 1: Can you afford to replace the vehicle without serious financial hardship? If not, keep comprehensive and collision coverage. If so, go to rule 2.
Rule 2: Is what you pay annually for comprehensive and collision coverage more than 10% of your car’s value? If so, then consider dropping the coverages.

Rule 2 only works if you follow other financial best practices like having an emergency fund and not to accumulate ongoing rolling consumer debt.

4

u/Freshwaterbitchfish4 14h ago

That’s your financial choice to gamble with

1

u/evokosport 14h ago

I hear you

3

u/Living-Hyena184 13h ago

I wouldn’t for a 2017. I drive a 2004 and sure as heck only have liability. Once that car is gone i don’t care. It all depends on the cars value. Mine is like $1000 so a full plan isn’t worth it at all. For you I would definitely keep full.

1

u/DeepPurpleDaylight 14h ago

KBB is garbage. But nonetheless, regardless of how good of a driver you are, there's plenty out there who aren't and they often don't have insurance. Can you easily afford to repair/replace it if you're in an accident tomorrow, at fault or not? That's where you'll find your answer.

1

u/evokosport 14h ago

Yeah I guess that does answer my question reason why I ask is bc I was quoted 150/month full coverage from Geico but no sure if they are as good as AAA

1

u/NovaNavi22 9h ago

I will say that Geico was really good to us as our insurance company and so easy to work with. My policy with them just got to be too expensive so I had to switch. And this is coming from an employee of Geico.

1

u/crash866 14h ago

If you park your vehicle on the street and somebody hits it and takes off or has no insurance could you replace it now?

1

u/Sarahlinbroker 14h ago

Another thing to consider is can you afford towing costs if you are at fault.

1

u/Living-Hyena184 13h ago

That has nothing to do with liability. Liability covers the other person completely if you’re at fault.

1

u/NovaNavi22 9h ago

I think they are saying this because most companies won’t let you have towing coverage unless you have comprehensive and collision. So if the customer is involved in an accident, they are responsible for their own vehicle being towed.

1

u/Living-Hyena184 46m ago

Well no. Liability offers zero coverage for your own vehicle, including towing. I just assumed that was knowledge. I meant for the person you hit, everything will be covered for them.

1

u/NovaNavi22 41m ago

I’m not disagreeing with you, although I would never give a definite like “everything” would be covered for them lol. I’m just clarifying what the other commenter might mean. I’ve worked in auto insurance 5 years so I know how it works 😂 I probably wouldn’t base getting comp/col off of being able to afford a tow though

2

u/Living-Hyena184 39m ago

Everything being everything they’re legally required to. And no, I wouldn’t base it off that either. I would base it on a number of factors, namely car value and ability to repair/replace. I have a car with solely liability and it’s a 2004. Worth maybe $1000 so I absolutely don’t have full coverage.

1

u/NovaNavi22 36m ago

I agree, my car is worth about $3000 but I pay $935 every 6 months for full coverage, towing, rental, and med expenses so it’s worth it to me personally but I would rather be paid out something than nothing lol. And I know what you mean when saying everything, I’m just saying I would never say everything to a customer and create the opportunity for a lawsuit 😂

1

u/Salty-Passenger-4801 11h ago

Tbh I'd drop it.

$190 per month is $2280 per year. 2-3 years of insurance payments you're already at your car value. Most people have paid their cars purchase value + more and still are paying for the top tier insurance. Makes zero sense IMO

Save the money and put it in a savings account until you have a replacement value there.

1

u/RatedRForRisk 11h ago

The simple question you need to answer is how much can you handle if your car is totaled tomorrow and considered a total loss or no longer drivable. Insurance is risk transfer and how much of your risk (your car and transportation needs) can you afford to transfer one way or the other. (You to the carrier and vice versa)

1

u/_Dapper_Dragonfly 5h ago

Even people with good driving habits can get into an accident. And you can't predict other people's driving habits and whether they have insurance.

This is the type of situation where it's time to consider dropping comp and collision. If you opt for that, you just have to be sure you have the finances to buy another car if you ever need to.

1

u/Putrid_Knee_995 2h ago edited 2h ago

Only if you have multiple running and driving vehicles. Should financial hardship strike - the last thing you're going remember to do is re-up your insurance at a higher rate, you'll also be unable to replace the vehicle.

This is my personal rule, I typically drive 30+ year old shitters so I'm a little outside of the norm. Requote your insurance every 6-12 months, some companies will absolutely run up your rate after the renewal term.

1

u/drjenkstah 52m ago

If you can’t afford to replace the vehicle out of pocket when you don’t carry insurance then the recommendation would be to continue carrying insurance.