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Auto insurance - when to go from full coverage to liability only?

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So either you buy a brand new car or a used car w/ a few years on it.  Either way you pay a lot of money.

You get full coverage w/ for your auto insurance.  How do you know when it is a good time to transition to liability only?  When the rate gets too high?

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It depends on your risk tolerance for self-insurance and the actual savings of dropping the collision portion of the policy, but I would say when the maximum payout on a collision claim (book value minus deductible) is less than 6X the deductible.  It also depends on how you feel about the car.  Do you like it enough to do a $2500 repair (regardless of who pays for it) when the book value is only $3-4K?

Why isn't this in finance?

Not just your risk tolerance but your risk itself. If it's something you only drive once or twice a month in nice weather on the highway, risk of collision is much less than if it's a daily driver used for commuting so you might drop it, assuming any loss wouldn't be a financial hardship.

when you want potentially less risk and are willing to pay for it.

When your car is worth less than the deductible coverage.

get liability only when you are in college, and get as much as you can reasonably afford when you are established in your career. reasonable being your deductible won't be too high when you accidentally rear end someone in slow traffic because you were checking out that hottie on the sidewalk

That's why I sing "Gimme, gimme dat ding!"

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