Should I have Full Coverage on My Older Vehicle in West Hartford, Connecticut?

You’re probably wondering if you need full coverage insurance in Connecticut. Unfortunately, there’s no straight answer as maintaining a comprehensive insurance plan depends on a variety of factors.

Liability vs. Full Coverage

Liability coverage is always a given. Nearly all states require some form of automobile liability coverage, as it protects you and your assets if the accident in question is your fault. Liability coverage is often the cheapest form of insurance any driver can carry.

Collision and comprehensive coverage covers physical damage done to the vehicle in the event of an accident. In most cases you have to pay a deductible, which is usually anywhere from $250 to $1000. If the vehicle is leased or purchased with a loan, most financial institutions require owners to maintain full coverage for the life of the lease or loan.

Determining your Insurance Needs

The age and value of the vehicle should always be kept in consideration. For example, if you have a 10-year-old car with a value of $3,000, the costs of repairing that vehicle could easily exceed its overall value, effectively totaling it in the eyes of the insurance provider. Unless you have a vehicle that’s less than 5 years old or one with significant value, it’s usually not worth the trouble to maintain full coverage on an older vehicle.

A simple formula to use when determining whether to pay for collision and comprehensive insurance is to multiply your monthly premium for both by 12 months, or 4 months if you’re paying on a quarterly basis. The yearly cost of collision and comprehensive insurance should not exceed 10 percent of your car’s current value. If it does, you’re better off paying for only liability.

Maintaining full coverage on your vehicle is a matter of how much your vehicle is worth to you and how much you’re willing to spend each year. An independent agent in West Hartford can help you choose the right coverage plan for your needs.