Is It Too RISKY to Reduce Liability Coverage on Old Car?

[4BLBKBND4]

Should a 1995 vehicle (850 VOLVO) cost $720 semi-annual premium? COVERAGE: LIABILITY: $100/300/100K- UN/UND: $100/300K- and $500 DEDUCT? PREMIUM BREAKDOWN: $189-LIAB, $179-COLLISION and $205-MED. Is it advisable
to decrease LIABILITY costs?

 

[xrac]

In my opinion it is not adviseable at all! A serious accident could exhaust those limits rather quickly.

 

[Guest]

what is the deduct for? I would drop that

 

[djs]

Deductible is for the collision (and comprehensive???) coverage on the car.

Add UMPD, drop collision, rates will be MUCH lower. You do take the risk that if you cause the accident, it will not be covered to repair your car. Also, on a he said/ she said type of accident, your insurance company won't fight for you. But, depending on what you think your car is worth, it may be better to drop the collision coverage and just have the liability coverage. Have UMPD just in case the other driver isn't insured.

Dan

 

[Sales71]

Do u have any tickets or accidents?

 

[xrac]

The question was whether to decrease liability limits. Not whether to change the deductible or drop collision or comprehensive. Personally on that beater I would only carry liability but raise the limits or add and umbrella.

 

[joshb]

Should a 1995 vehicle (850 VOLVO) cost $720 semi-annual premium? COVERAGE: LIABILITY: $100/300/100K- UN/UND: $100/300K- and $500 DEDUCT? PREMIUM BREAKDOWN: $189-LIAB, $179-COLLISION and $205-MED. Is it advisable
to decrease LIABILITY costs?

Since you are in Michigan you also have PIP coverage. I may be wrong, so someone who knows should correct me, but I believe the PIP coverage does not have a limit, thus resulting in high rates. PIP is a mandatory coverage as well in Michigan.

In regards to the liability question. It will probably be a negligible decrease in premium and not be worth the added risk.

 

[Guest]

I Bluebooked the car here in my area, about $1800, i would drop the comp and coll and save money there, and then you could even increase the liability limits.

DONE

 

[BlockO]

the age/value of your own vehicle has nothing to do with liability coverage. an old beater can be liable for the same amount of injury/damage that a newer car can.

if you want to lower anything, drop the comp & collision and add UMPD. (no sense in carrying phys. damage coverage on a 16 yr old vehicle)

lowering liability or UM will only save a few bucks. highly unrecommended!

 

[Sales71]

In my opinion it is not adviseable at all! A serious accident could exhaust those limits rather quickly.

Xrac what happened to the baby picture?