$$$avings Tip #14
HighRiskAutoInsurance "Tip of the Day"
8.) Should I have "Full Coverage" on my 1996 Toyota Corolla?
The term "full coverage" is used by motorists to describe fully insuring a vehicle with both "comprehensive" (which covers everything that could happen to your vehicle except for you causing an at-fault accident) and "collision" coverages (which covers the other party's vehicle/property damage and bodily injury if you cause an at-fault accident). Having collision only coverage typically is referred to as "liability" or "plpd". Note that (with collision only coverage) if anything would happen to your vehicle - hail damage, theft, or any even an at-fault accident - YOU would be responsible for the repair of your vehicle.
Is it worth it to have "full coverage" on a 1996 Toyota Corolla with 194,000 miles? Probably not. Anytime the replacement cost of your vehicle is equal to or less than your deductible, it would be financially irresponsible to continually fully insuring the vehicle. Antique, historical, vintage and specialty cars are the exception.
The term "full coverage" is used by motorists to describe fully insuring a vehicle with both "comprehensive" (which covers everything that could happen to your vehicle except for you causing an at-fault accident) and "collision" coverages (which covers the other party's vehicle/property damage and bodily injury if you cause an at-fault accident). Having collision only coverage typically is referred to as "liability" or "plpd". Note that (with collision only coverage) if anything would happen to your vehicle - hail damage, theft, or any even an at-fault accident - YOU would be responsible for the repair of your vehicle.
Is it worth it to have "full coverage" on a 1996 Toyota Corolla with 194,000 miles? Probably not. Anytime the replacement cost of your vehicle is equal to or less than your deductible, it would be financially irresponsible to continually fully insuring the vehicle. Antique, historical, vintage and specialty cars are the exception.
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