Right now I am insured with Allstate. I am under an Allstate plan called the gold protection plan in which I will be eligible for a new car if there is an accident. I think I am paying a liitle too much for car insurance. I have a 2004 Honda civic and a 2006 Honda civic. Both cars has full coverage. Does a two year old car need full coverage.
I am a safe driver and so far there have been no accidents. But two times some one came and hit my older car and both times the damage was covered under the other party’s insurance. Is comprehensive coverage enough for me or is it a good idea to keep the full coverage. Any recommendation.
By car insurance | 6 Comments
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May 7, 2010 @ 3:29 am
Progressive
May 7, 2010 @ 4:06 am
Google it..
May 7, 2010 @ 4:55 am
What is the value of the 6 yr. old 2,004 Honda? Does the annual insurance premium cost and the deductible equal or exceed what it would cost to buy another 2004 Honda to replace yours if it got totaled?
If so, you would be better off just carrying liability to cover the other guy on the 2004, and just use the money you would have spent on the insurance premiums to buy another 2004 if yours get totaled.
The 2006 is only 4 yrs. old, it may be getting close, but not there yet. I would continue to carry full coverage on it.
May 7, 2010 @ 4:57 am
It depends on how much the cars are worth to carry full coverage on the cars. And, if you have the money to replace it if something happens to it.
May 7, 2010 @ 5:46 am
You may be paying too much, but you may require the Comprehensive (Comp).
Is either car financed? If so you need Comp, to pay off the lien holder.
If you have an accident that totals your car, most Comp plans will pay only the “market value” of the car, which could be less than you owe. This applies whether you’re at fault or not. There is “gap insurance” available for this case, and it sounds like your gold plan goes a little further.
I’d suggest getting quotes for insurance every year or so, and evaluating whether you’re paying too much. Be aware of the types and amounts of coverage you’ll need, so you don’t get sold a “Rolls Royce” policy, when you just need a “Honda” version. There are online sites which will get you multiple quotes, or you can check with an independent insurance agent.
Often companies, such as Allstate, will give significant discounts if you have multiple lines with them, e.g. Homeowners + Auto. This can save you some money, although you may lose some flexibility.
May 7, 2010 @ 6:03 am
The bank will require full coverage. And a two year old car is still farily new. I think it’s reasonable to maintain full coverage on it for the first five years or so. After that, collision and liability insurance should be enough.
As to how much you’re paying, I don’t want to sound like a commercial, but a few months ago I researched car insurance rates from several companies. I was actually really dissatisfied with the results, or lack thereof, I got from Allstate while doing my research. I was insured by them many years ago, but I don’t think I would go with them again. But getting back to my point, Progressive really did provide me with the easiest comparison shopping. Just like they say in their commercial, they’ll find you rates from more than one company and show which is best for you. For me, it was Geico. So check out Progressive’s site and you’ll end up with the best deal you can, I’m sure.
I hope this helps!!