When I got my first car my mom added me to her car insurance and I paid the difference. I tried once to see what it would cost me on my own, but since I was under 21 at the time, it was outrageous. But as I got older, I moved on to my own plan and then the confusion set in. I had the state minimums for liability with my mom but should I have a higher amount? Should I add in comprehensive and collision as well? The only thing I knew was I did not need glass coverage. Compared to what they wanted me to pay, replacing the glass out of pocket was better.
At that point I had a car worth about $500-$1000 so I decided I did not need comprehensive and/or collision. If something went wrong I could replace the car with another beater or, at worst, take the bus until I could afford a new car. However, I did decide that I would increase the coverage I had for liability. If I got into a car accident, at the state minimums, I would be able to cover, at most, one basic car. If I hit a nice car, I was pretty much screwed. However, I did not have much money so, I slowly increased the coverage over time. Every six months, I looked into the cost of increasing the coverage and I looked into new insurance to see if I could get it for cheaper. And it worked.
At 19 for just state minimum liability coverage, I paid $700 every six months, now at 27 I pay $450 per year for $100,000/$200,000 plus comprehensive and collision. At 26, I replaced my old beater with a newer car and given that it is worth about $8000, I now have comprehensive and collision. I do have a $1000 deductible though, to keep the price down. I plan to drop the comprehensive and collision once the worth of the car is at least under $5000, though I am not sure exactly what point I will drop it. Anyone have an idea on when I should, and if you would not mind, why you think that point is best?
I would like to increase my liability coverage up to $100,000/$300,000 but for now, I think $200,000, is ok. I now only check every year to see if I can find a better deal because after two times of not finding a better deal, I think I am at a great spot. If anything changes, like moving, adding a car or removing comprehensive/collision, I would go back to checking every six month.