Comprehensive collision coverage seems a smart choice but has a much higher price than liability insurance. If you’ve asked for a loan to pay for your car, you probably have no other choice: your lender will request proof of complete coverage and collision. Discarding this coverage is generally not a good idea for those who do not have the savings to pay for repairs from their own pockets.
But there are situations in which the choice of responsibility alone makes sense. For example, if you drive an old paid vehicle that can easily be repaired or replaced, maintaining liability coverage alone can mean significant savings. Comprehensive collision coverage can also be excessive on any car drive in moderation.
To see how much I would have saved on car insurance by denying all the coverage but the responsibility, I put some statistics into a quota generator. I used the image of a married man in his 30s riding a Hyundai Sonata 2011. I said I live in a small southern country, has a clean driving record and averages 12,000 miles per year. A policy with 50/100/50 liability, in addition to global and collision policies with franchises of $ 250, would delay $ 45 per month. Leaving aside global and collision policies, I would reduce my account to just $ 24 a month, almost half the cost.
Would I personally abandon my complete and collision policies? No, because my 2013 Jeep Patriot is still relatively new and would cost me a considerable sum to repair it or replace it. My brother, however, drives a 1984 Ford F150. In the best case, it’s worth about $ 3,000 and your policy is only $ 19 a month! For him, abandoning complete coverage and collision made much more sense.
The end result: liability coverage is the cheapest option and meets the legal requirements, but canceling a complete collision coverage can be a risky move if repairing or replacing a car after an accident would be a big deal economic difficulty.
Complements and other types of coverage
There are many other types of coverage and surcharges, some of which may be needed in some states. Of particular interest is protection against personal injury, which pays for medical expenses after an accident.
If you’re trying to keep your bill low, your personal injury coverage is probably not a smart purchase as long as you have a good health insurance plan; There would be too many overlaps between the two policies.
There is also uninsured or underinsured motorist coverage, which frees it from danger after an accident in which the other driver is at fault, but does not have enough (or any other) and the insurance cannot pay. Other surcharges pay for car rental during car repair and roadside assistance.
As for other small additional components, consider omitting them. If you can cover the cost of rent (or borrow a car for a friend, while in a hurry), car hire drivers are useless, and AAA membership is often a better deal than roadside assistance if you have an old vehicle.