Did you keep full coverage on the car your teen drives?

[Anonymous]

I’m debating what to do here.

Teen will be soon getting license and driving our 2020 small SUV. We currently carry full coverage with a $500 deductible. Car is fully paid off. We have a third car I’ll be driving. I’m starting to panic! What do others do? What would YOU do? I haven’t even called for prices yet, I’m scared lol

[Anonymous]

It is costly to keep full coverage, but yes we do. OTOH, for our young adult son who has his own vehicle and insurance, he does not because the value of his vehicle is so low and just about anything would total it, leaving him with probably around $1k.

Really, it comes down to this. If you don't get full coverage and there is an accident that is their fault, you won't get compensation. So, you need to do a cost benefit analysis considering the residual value of your vehicle and your ability to withstand a hit of a total loss.

[Anonymous]

Full coverage.

[Anonymous]

Anonymous wrote:It is costly to keep full coverage, but yes we do. OTOH, for our young adult son who has his own vehicle and insurance, he does not because the value of his vehicle is so low and just about anything would total it, leaving him with probably around $1k.

Really, it comes down to this. If you don't get full coverage and there is an accident that is their fault, you won't get compensation. So, you need to do a cost benefit analysis considering the residual value of your vehicle and your ability to withstand a hit of a total loss.

Thanks. I just looked up the KBB value and it’s $20k, which is insane because that’s about what I paid back in 2020. But no, I wouldn’t want to be hit with that loss, so I guess that answers my question.

[Anonymous]

Anonymous wrote:I’m debating what to do here.

Teen will be soon getting license and driving our 2020 small SUV. We currently carry full coverage with a $500 deductible. Car is fully paid off. We have a third car I’ll be driving. I’m starting to panic! What do others do? What would YOU do? I haven’t even called for prices yet, I’m scared lol

Yes, full coverage.

[Anonymous]

yes full coverage - they drive a 2023 Honda HRV.

[Anonymous]

Full coverage and premium will be enough to give you a heartattack.

[Anonymous]

Full coverage on 2013 sedan but honestly, I’m starting to think I should drop to liability only. We paid $12,000 for it back in 2023 when the used car inventory was low and prices were high, but I think it’s worth less than $5000 now. I need to have to look at the cost difference to drop to liability only.

[Anonymous]

It depends. If you can afford to pay cash for costly repairs or worst case, a replacement, I’d only get minimum coverage. If you couldn’t pay for repairs, then get full coverage.

[Anonymous]

It depends as the PP said, especially if it's paid off. If the value of the car is low, liability only. If the value of the car is high, full coverage. Tbh, we're giving our teen an old paid-off car with low value just for this reason, have liability only. Once he goes to college he'll get a better car.

[Anonymous]

Really depends on your financial situation IMO. We do have full coverage for our teen but the vehicle is newer (cheap sedan, no loan- but is worth enough that we wouldn’t be thrilled about having to replace it out of pocket).

One thing I will say: our teen dinged the car (backed into a pole) within the first few months. Almost 2K worth of damage. We didn’t even file a claim because we don’t want the insurance cost to go up even more. So that may be something to think about too (would you even file a claim for smaller repairs).

[Anonymous]

Full coverage for all 3 teens/college kids plus umbrella. 3 cars in the family.

[Anonymous]

Anonymous wrote:Full coverage for all 3 teens/college kids plus umbrella. 3 cars in the family.

Ditto— about to add the youngest of my three next week. Ouch.

[Anonymous]

For a car of that value, sure. If the car were 12 years old, no.

[Anonymous]

Yes, the car my kid drives is technically worth more than mine so definitely. That’s not saying much since mine is really old. But the insurance company explained that all of us were insured for all 3 cars and it doesn’t really matter who we designate for which.