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Car Insurance

July 17th, 2006 at 05:53 pm

In an effort to find more money in my budget, I decided to take another look at my car insurance yesterday.

I have a 97 Honda Civic with about 91k miles. It has a few mechanical/appearance problems which don't affect the safety, but does affect the appearance.

Blue book value is right around $3000. I own it outright, so the only insurance I'm required to have is liability.

I had a deductible of $1000 for both Comprehensive and Collision - so that would leave ~$2000 (if Geico actually gave me that) before my car would be considered "totaled".

I was paying $70/month / $411 six-month premium. After taking Comprehensive off, reducing liability to legal limits, declining other coverages (other than Roadside, only $1/month), my 6 - month premium lowered to $235. Almost $200.

I looked at the fact that *if* something were to happen to my car, it would not prevent me from getting to work. So . . I wouldn't be desperate for transportation. I also live in an area where I *could* take public transportation to get to the grocery store, etc if I had to. (Needless to say, I think I'm a pretty experienced bus rider now. Smile )

I've been playing with this decision really ever since I finally had my car title free and clear. Now, it seems like it is finally an ideal time to take this step and go to just liability + road service.

Well . . . Wish me luck!

KIF,
Laura

5 Responses to “Car Insurance”

  1. lrjohnson Says:

    Coincidence, maybe....I'm evaluating my auto coverage right now! Weird.

    http://www.savingadvice.com/forums/showthread.php?t=19735&goto=newpost

    what are you doing on liability?

  2. jacquelynrose Says:

    I just CHANGED my Coverage LOL WEIRD. YES I have a Car Smile

    Jacquelyn

  3. frugaltexan75 Says:

    How funny! Smile
    lrj - What I'm doing with liability is the bare mininum required in Texas. 20/40/15. I am actually also keeping the uninsured driver portions as well - all total only about $30 of the premium.

    Before I made my final decision to switch careers, I had bought an extended warranty on my car - it has 3 years to go on it. Part of it (if I remember right) is Road Side Service. So . . . I may be able to cut out Comprehensive Other than Collision which is required in order to have Road Side -- which would be another $46 off my premium.

    Jacquelynn - Yay! I'm so excited to hear you got the car you wanted. Smile Smile

  4. Saving in So Cal Says:

    Reducing/eliminating the comprehensive coverage makes sense if you have a low value car, but reducing liability coverage is a different matter. If you have assets, such as home, you want to have enough liability coverage to make sure those assets are not at risk in the event of an accident. Most state's liability minimums do not approach a driver's actual liability in the event of a serious injury accident. If you have assets or earning capacity, you could be required to make up the difference.

    If you live in California, the Insurance Commissioner's website contains information about each insurance company's premiums and complaint history. You can also go to AM Best's website to check on the insurance company's solvency. When I utilized these resources, I found that some of the lower cost insurers had a exceptionally high number of customer complaints or were nearly insolvent. It was very eye-opening.

  5. Sangita B. B. Says:

    thanks for the information its very helpful
    check my car insurance related site http://www.careinsurance.bravehost.com/

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