How do I decide if the insurance policy covering my 2007 Acura MDX should be liability only?
Our insurance company quoted us $986/year annually with a $1000 deductible or $1062/year with a $500 deductible. According to Kelley Blue Book, the value of the vehicle is $6200. Does it then make sense to have liability only since the annual premium is >10% of the vehicle value? We would like to keep the vehicle for several more years as it's otherwise in great condition.
- Determine an estimated fair market value of your vehicle. While Kelley Blue Book may offer useful estimates, I recommend using NADA guide since most insurance companies use them to determine a vehicle's value at the time of a claim.
- Decide on a deductible. With older vehicles, choosing a lower deductible will help to maximize the value you would get for the car if it were totaled.
- Look at the difference in premium between a "full coverage" policy that includes the deductible you want and a liability-only policy. If the amount of money you save in premium by going with liability only is not enough to cover or replace the vehicle if something happens then it's probably best to maintain comprehensive and collision coverage.