Insurance Agent Forum

[MOLLY]

I understand that is normal policy to drop full coverage once your auto passes 5 years in age, just have liability coverage. True or False?

[salpro22]

Originally Posted by MOLLY

I understand that is normal policy to drop full coverage once your auto passes 5 years in age, just have liability coverage. True or False?

I believe that the option to purchase full coverage vs. liability relies on 3 factors

1) Do you have a bank loan? IF so, banks require full coverage
2) Do you want full coverage or will you risk just having liability?
3) What is the mandatory levels in your respective state?

Hope this helps.

[Newby]

Originally Posted by MOLLY

I understand that is normal policy to drop full coverage once your auto passes 5 years in age, just have liability coverage. True or False?

It has more to do with the clients net worth. Is he in a position to self-insure or does he want to pay for insurance. I always drive 5+ year old high-milage cars and I sometimes carry full coverage. Depends on the book value of the car and the price of the insurance.

If you could easily shrug off the price of replacing your car, you wouldn't pay for insurance unless: 1. the premium seems very reasonable or 2. You consider your risk to be higher than the insurance company does.

I'm saying this from a customer point of view.

[Insurance Phoenix]

Originally Posted by MOLLY

I understand that is normal policy to drop full coverage once your auto passes 5 years in age, just have liability coverage. True or False?

If no lienholder, it is the vehicle owner's decision. Generally speaking, I would run a quote on a vehicle with and without full coverage to see the cost difference. The current value of the vehicle is important too.

I had one client who came to me with only liability on an older vehicle with his prior company. I quoted full and liability and the cost was not much. He opted for full coverage and was very glad when the car was totalled.

Arizona Auto Insurance

Arizona Home Owner Insurance

[tommyk]

Illinois requires mandatory auto insurance.
If you have a lien on the vehicle, you must carry full coverage at the limits set by the lender, until you pay the vehicle off.
If you hold title to the car, then, if you wish, you may carry only liability insurance to cover the other person.
Most liability insurance is only $25k, one accident and you can go over that real quick.
But, there are still many people out there with no insurance. Get stopped by the police or have an accident....loose your license...then big time insurance costs...