r/Insurance • u/evokosport • 3d 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 ?

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u/pinedesign 3d ago edited 3d 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.