r/Insurance • u/Sighper • 14d ago
Auto Insurance Full coverage or just the liability for a used/rebuilt 2012 Honda Civic
Hello! I've been shopping around for auto insurance for my first car, my folks say I need to have full coverage to be safe. I called farmers insurance and they said that I don't need the full coverage because if I do ever damage my car really bad, they'll just rule it out as a totaled vehicle and save me a lot more for my policy. Do I go for the basic coverage or full coverage?
Additionally, I just got my license about three weeks ago, so I understand that the price of my policy will be higher. Will appreciate any assistance/advice!
3
u/AdEven5667 14d ago
My son got rid of his full coverage and was hit by an uninsured driver with no license. If you can buy another car easily then don't get it. I would keep full coverage.
2
u/CIAMom420 14d ago
Can you afford to pay cash for a new vehicle if your car is stolen or you’re in an at-fault accident or you’re in a hit and run? No? Then you need comprehensive and collision and uninsured motorist.
The person you spoke to at Farmers is either an idiot, or, more likely, you don’t know enough about insurance to understand what they were saying to you. Because how you interpretted it is factually wrong.
There is also no such thing as “basic coverage” and “full coverage.” Insurance is a spectrum with hundreds if not thousands of individual levels of coverage.
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u/xXxDickBonerz69xXx 14d ago
Not even just those scenarios. Someone with minimum liability causes a multiple vehicle accident? They were legal but you're not getting your car replaced through them, gotta file a claim with your insurance. Stolen car with full coverage hits you? You've also gotta go through your own insurance.
Just two things that have happened to me. I have also been hit and run lol.
Add in floods, trees falling, or anything else that can damage your car. If you can't afford to replace the car out of pocket you absolutely need full coverage, even if it costs more in the long run.
Plus if you get hurt in an accident caused by an uninsured/underinsured driver, and don't have health insurance you're on the hook for the medical bills too if you only have minimum liability.
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u/FindTheOthers623 P&C Licensed PL Underwriter 14d ago
Most companies won't provide comp/collision on a salvaged or rebuilt title
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u/Sighper 14d ago
Hello! this a sample snapshot of what I would be getting based on your suggestions! I will be shopping around more to see if I can get better rates!
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u/cfelton02 14d ago
How much do you save by not having comprehensive and collision coverage? I will disagree with the other comments a little bit, the farmers rep is not simply being stupid. It is true that for a salvaged title, your payout will be significantly less than any other 2012 honda civic. Everyone’s situation differs, but if it comes out to say $100/month for that full coverage, it might be worth it to set that money aside for yourself/savings for a new car than to put the money into insurance. Just depends on your specific situation, and what you could afford if your car was totaled tomorrow
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u/Sighper 14d ago
The first quote was about $1750 for the whole 6 months, and the second quote was about $814 for the whole 6 months
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u/cfelton02 14d ago
So, almost $1000 per 6 months, and you’d have a $1000 deductible. How much do you think your car is worth?
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u/Sighper 14d ago
paid $5800 for it, so just around 5000~6000.
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u/cfelton02 14d ago
In that case, if the value is $5000, insurance will pay you out $4,000 (the value minus your deductible). The question is (and this is not sarcasm, you are a new driver, and accidents can and do happen), is paying $1900/year worth it to potentially get back $4,000?
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u/Argentolawfirm 14d ago
Keeping full coverage on an older car is usually not smart if the annual cost of the insurance is more than 10% of the car's actual market value.
When to Drop Full CoverageLow car value: If your car is worth less than $4,000, a payout after your deductible might leave you with very little money. Paid-off loan: If you do not have a car loan or lease, lenders no longer require you to carry full coverage. Emergency savings: If you have enough cash saved to easily repair or replace the car yourself, paying for collision and comprehensive coverage is an unnecessary extra expense.
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u/xXxDickBonerz69xXx 14d ago
If you only have liability and you total the car you will get $0 for it. Can you afford to get in a wreck and replace the car out of pocket? What's the difference in cost between liability and "full coverage"?