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Full Insurance Vs Liability - Using Money Wisely?

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Full Insurance Vs Liability - Using Money Wisely?

 
Old 10-02-2017, 07:12 PM
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Default Full Insurance Vs Liability - Using Money Wisely?

Hello All,

I think the general population will say keep the full coverage on the S2000. However, I rarely drive the car but I'd like to keep it for a very long time, give or take 15-20 years.
I've had a full insurance coverage on my S2000 since day one. So, I did a very super minor computation and realized, over the last 12 years I could have saved at least $5,500-$6,000 if I only have the liability insurance.
I have spoken to my insurance agent, and advices me that if I do change it to liability but decide to, let's say take it for a long drive with overnights, I can easily call them and have it switched back to full coverage and he adds, all they do is click boxes on their system, and boom I'm fully covered. Basically, they don't mind doing extra work and at least it still is extra money for their company.

I just thought, why not spend my money wisely and toggle around my insurance when needed?

Thoughts?

SS
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Old 10-02-2017, 09:33 PM
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The problem here is, hindsight is 20/20. You didn't have any accidents, and you could have saved that $6k.

But what's the plan if you trim your insurance to liability tonight, and tomorrow you hit some black ice or hydroplane in a rain storm or some other mistake -- now you'll be presented with a bill -- if you hit your rear quarter panel and bumper and lights, that can be upwards of $10-15k out of pocket.

How old are you and how much do you currently pay per year? $6000 over 12 years is $500 a year -- that can't be right.

Re: the toggle back and forth, I'm going to assume your agent/company has more patience than mine.
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Old 10-03-2017, 03:07 AM
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The same with your medical insurance I'm sure. I've never spent a night in the hospital other than in the Army. I don't even want to compute what I'd have in the bank (even with bank interest rates) if I'd been "smart enough" to have just banked the money I wasted on insurance.

Total your S2000 and you'll still come out ahead with that $6000 expense.

I drop my liability insurance every winter when the car is in storage. Car remains insured for everything else. There's a big "Don't Drive" label I put on the car until spring. Done with a telephone call or internet click.

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Old 10-03-2017, 03:11 AM
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But - what will your coverage pay if your car is totaled tomorrow? Get that number. It might be a lot less than you think.
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Old 10-03-2017, 04:41 AM
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If you're really not driving the car that much, you can also look at insurers that offer lower rates for such things, like Hagerty.
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Old 10-03-2017, 05:37 AM
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What's your stated mileage on the S? Obviously insurance is vary widely, but when I had my S insured as a second car with something like 2,000 miles per year the rate was literally pocket change. If you only have one person on the insurance and two cars with one stated around 12k per year and the other at 1-2,000 per year it should be seriously minimal to keep full coverage on the second car.
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Old 10-03-2017, 05:38 AM
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Also $6k over 12 years is $40 a month. I'm fairly certain you can find a way to save an extra $40 somewhere else if you're worried about budget. It's really not much money.
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Old 10-03-2017, 10:50 AM
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Originally Posted by Chuck S View Post
I drop my liability insurance every winter when the car is in storage. Car remains insured for everything else. There's a big "Don't Drive" label I put on the car until spring. Done with a telephone call or internet click.
I used to do this, but I bought an umbrella policy to cover a rental house I own, and my insurer (USAA) no longer lets me do this. The reason they gave was that my normal insurance covers me up to $300k, then my umbrella kicks in from $300k-policy max. If, however, I dropped my car to state minimums (what I used to do by putting it in "storage"), if I had an accident I would be covered to the state minimum ($25k?), then no coverage $25,001-$299,999, then my policy would kick in at $300k, and that makes no sense. Therefore, I have to keep the car fully insured (liability). I dunno, it made sense to me, and it really didn't cost me too much extra. Plus I can take the car out spontaneously if we get a nice day in the winter (like we did this past February).
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Old 10-03-2017, 11:02 AM
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It only really depends on how much blue book is for your car. You never know if you will need insurance, so you cant go by that. It is all what you are paying vs what they will pay out if it is totalled. At some point is starts not making sense. For my s2k, it is well worth the full coverage for now. Although I am going to talk to Hagerty. Many times you can get agreed upon value (likely above blue book) coverage meaning no questions asked if it gets totalled, for less than you are paying now for normal insurance. For a car like the S2k, and stating low usage, they likely will insure it.
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Old 10-03-2017, 11:14 AM
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Im in the same boat, the Honda is my second car and it sits in the garage all the time with full coverage for fear of it ever being stolen or anything. over the years insurance has just made a profit off me, I've never had any claims. thinking of switching also because I'm not worried about myself causing an accident, just vandalism or theft.
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