Should I keep full coverage on my vehicle or switch to liability?
I will be purchasing my mother's 2006 Ford Taurus SE. The mileage is only 39,000 and the car is in very good condition. Should I buy full coverage or just go with liability? Not knowing how an insurance company would value the car should I be in an accident, I'm not sure how to proceed.
The first thing I would do would be to determine a rough estimate of the value of the vehicle. I recommend using NADA guides or some other valuation service like Kelly Blue Book. I normally tell people that vehicles valued under $4,000 are best insured on a liability only policy since the additional cost of coverage plus the deductible means you wouldn't get much value for the vehicle if it were totaled. If the vehicle's value is higher than that then it's probably a good idea to continue to cover it for physical damage. Your best bet is to compare rates for the vehicle with as many companies as possible to find the lowest price at the coverage level you're wanting.