<< Back to all Blogs
Login or Create your own free blog
Layout:
Home > Help us make a decision
 

Help us make a decision

November 28th, 2016 at 05:21 pm

My husband's truck, a 2008 GMC Canyon, it's worth about $10K. It has very low mileage (about 35,000 miles). We are paying full coverage insurance for this vehicle. Do you think it's worth keeping full coverage on an almost 10 years old truck? When is it appropriate to just pay liability insurance? The truck has been paid off for quite some time and it's in excellent condition.

Any advice?

6 Responses to “Help us make a decision ”

  1. creditcardfree Says:

    Well, we had a vehicle that was totaled and we only had liability. I wish we had stayed with collision, but instead we got $250 for a vehicle that had been worth $4000 and could have been fixed for $500 with our deductible. If we had full insurance we wouldn't have had to pay towing or impound fees. I won't ever go to liability only, even if I could pay for a new vehicle outright.

  2. Laura S. Says:

    I agree with CCF and also the fact it has such low mileage. Keep the full coverage. My son bought a 20 year old car, the difference between liability only and full coverage was minimal.

  3. AnotherReader Says:

    The most you will get is the current market value. If it were totaled today, you would get $10k. I would drop full coverage when the value drops to something under $5k. A number where you could absorb the loss without pain.

  4. thestrongprofessional Says:

    I agree with the others. It's best to keep your full coverage insurance until your car value drops below 5k or so. Accidents do happen and it would be unfortunate for you to have to pay a big lump sum out of pocket if you were to get into an accident with the truck. Also as stated previously, the price difference between full coverage and liability insurance for a 9 year old truck is probably minimal.

    Raphael

  5. MonkeyMama Says:

    I'd say do whatever you feel comfortable with. Though the math might not make sense on an annual basis, it does make sense if you don't over-pay for insurance over several decades. Of course, I'd factor driving history and drivers where you live. (I can look back over the decades and say we've come out ahead not paying for unnecessary auto insurance, but we've also mostly owned cars with very little value). All of that said, we do personally drop full coverage around the $5k mark. But I don't know that there is anything magical about that number. Is just what works for our situation in the here and now. That might be $10k if we had more wealth to absorb a very random loss.

  6. LivingAlmostLarge Says:

    Full coverage until you are ready to coverage entire loss for use also around $5k. We move to liability only.

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 9.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]