Hi everyone!

I'm just got my very first car, a 98 Honda Accord. My wishlist was simple: auto, ABS brakes, sedan, CD player. I'm so lucky that my ride has leather seats and a sun roof too!

I just got car insurance from State Farm and it's a whopping $135 per month! My pal in college has insurance on his old Toyota (Corolla, I think) from Progressive for only $40 a month.

What kind of coverage should I go for, to save $$? I have no comprehensive coverage, just collision with a $500 deductible. Should I drop collision as well? I'm not worried about the external looks of my car. It looks beat up from the outside, and I won't spend $$ on cosmetic stuff.

Please give tips on how to save on insurance. (ps: I live in a college dorm so I don't need home insurance or renters' insurance or life insurance bundle packs. I also don't have any family insurance plans. Just 1 person driving 1 car.)

Thanks for your tips, all!

 

Hello New Member..Welcome..

Call Progressive is what I would suggest...

 

Just drop the collision. One of the money saving features of an old car is you don't need to purchase collision. Liability is all that you need with minimum coverage.

this is the state requirements:

Minimum levels of car insurance you are required to buy | Insure.com

 

I agree with just liability. It will cover the other person if you hit someone, but they won't fix your car. Since your car isn't worth a ton of money it really isnt worth it in my opinion, especially when you are young so the rates will be very high to have full coverage.

 

Having some experience w/ teenage and young drivers, I have to ask whether the car title is in your name? If not, then insurance coverage is protecting title holder.

If owner is your parents and they have significant assets, they should decide how much liability coverage is necessary. An umbrella policy may also be indicated in some cases.

good luck

 

Thanks for the advice so far, everyone!

Yeah, on KBB a 1998 Honda Accord Ex is worth only $3000 or less, and since I have to pay a $500 deductible if I have an accident, does that mean State Farm will only pay a max. of ~$2500 for repairs if the car if wrecked to the max ('totaled', you might say). They said the max limit they will payout is the "clean trade value" (???) of the car. Is this similar to the KBB price?

TexasHonda, the title is in my name and the insurance company warned me that I'm a 'youthful driver' (eh, nothing I can change about that part, lol!!). My parents live in another country, so I'm considered a 'single adult' for all insurance and ownership purposes.

The 1 thing I didn't skimp on is liability coverage. I have quite high BI and PD liability limits in case I hit a Maserati or your brand new 2012 Honda I can't afford a lawsuit from other people!

 

^Your family should be proud of you. You are very responsible.

 

Yes that is right that if you crash they will only pay up to the value of the car. It doesn't seem worth it to me.