Which insurance for vehicle?

[Bob B.]

I bought a new (to me) vehicle today.

Yes, I financed it. I financed it over 36 months, and the monthly payment will be 5.7% of my gross monthly income.

It's a 2004 Dodge Ram pick up. 68,000 miles. $13,100.

Now that I have that part out of the way, my question is on insurance. I've always driven a beater. I don't think I've ever bought a vehicle that was valued more than about $3,000 before today. (I'm talking about the vehicle that I drive back and forth to work each day. Our family vehicle is a different story.)

So, I've always carried the cheapest PLPD insurance policy that I could. Now that I'll be driving something more valuable, should I rethink this? Here are my quotes for 6 month coverage:

PLPD: $278.75
PLPD+Comp: $425.51
Comp+Collision: $606.60

My EF is at about $2,000

My thought is that I should probably get the full comp+collision while it is financed, then move it down to a lower level after the 36 months, or at least until I have sufficient EF to replace the vehicle. That might be a while.

Any thoughts would be appreciated.

[bjl584]

The lender will require you to cover comp and collision as long as it's financed. Once you have the title you will have more flexibility.

Until you truck is literally not worth fixing I would have full coverage on it.

$1200 a year in insurance is better than totalling a vehicle worth $10K plus and getting $0 for it.

[siggy_freud]

As was stated, your lender will have a minimum coverage requirement and 99% of the time that includes comp/collision.

Where you can save money is on medical liability insurance for yourself, provided you have good coverage through work.