Car insurance! How bad of a beater will you drive?

[TexasBushwhacker]

Every year the value of my car goes down, as well as the number of miles, but my insurance keeps going up. I'm considering selling my current car, a low miles hybrid, and getting a "beater". I'm 69, currently retired and living on Social Security only. I may pick up some part time work in August when tax season heats up, but I have some doctor appointments and family caregiving commitments before then.

So, how low, in value, do you go before you drop your comprehensive insurance? I'm looking at vehicles between $2 & $6K.

[multigraincracker]

1. I have on older van,2000 that I just haul stuff in. Worth about $5K.

I drive it slow and just have pl/pd, encourages me to drive it carefully. Also live in a no-fault state.

[Haggard Celine]

2. I just got a 'new' car back in December.

The previous car was a 2002 Mercury Marquis, and I drove it until it was about used up, but it was still running when I got rid of it. Sold it for $500. It was a good car for the 10 years I had it. If you'll find you a good used car, you can just keep liability insurance on it. And get the tow package from the insurance company as well, because if you own an old car, chances are it'll quit on you now and then. I recommend getting an older Toyota or Honda or Subaru, or a dependable American car. The American cars are usually cheaper to fix. If you drive a lot, you need to get something newer and more reliable. Good luck!

[Americanme]

3. I have full coverage on 2 fairly new vehicles,

but because of the raising rate, I changed to a higher deductible, switched from unlimited catastrophic to $250,000, and a couple other minor changes. Saved me about $300/month.

[VMA131Marine]

4. I would be hesitant to give up a car that's reliable

for one that is likely to require significantly more than routine maintenance because of age and/or high mileage. A significant engine, transmission, or suspension repair could cost more than what you currently pay in insurance and would be unpredictable. The only caveat would be if you have a friend or family member who’s selling you a vehicle under market value. You’re also going to end up spending more on gas most likely.

[TexasBushwhacker]

5. I just don't drive enough to warrant a hybrid anymore

I never really did. I bought it because my niece needed a car, so I gave her my '06 Scion xB that I drove for 14 years. That was in 2020 and she's still driving it!

But right now, I am broke, broke, broke. I bought the hybrid because it was on the lot, it was a good price and it was the only one that wasn't black, white, gray or silver. I LIKE COLOR! So it's paid for and is worth almost as much as I paid for it 6 years ago. But I have to pay my brother back the $$ he loaned me to move. Whatever I end up getting, I should be able to put $8 to $10K in the bank.

[waterwatcher123]

6. You can usually get a break on your car insurance by bundling it with your homeowner's policy.

Switch insurance companies every couple of years too. Insurance companies never reward loyalty other than with some token acknowledgement. You can also save quite a bit by getting credit for taking a defensive driving course and raising the deductible to $1,000 or so. AARP offers defensive driving courses all over the country (you can usually get in free by being a member).

If you are looking for a low budget car, consider a Toyota Corolla or Honda Civic. They last forever and require very little in terms of annual maintenance (oil, tires, air filter, brake pads, etc.). The Corolla has used a timing chain since about 1998. Honda Civic uses a timing chain too back to 2006. You still have to replace the serpentine belt occasionally, however.

[TexasBushwhacker]

7. Yes, I made get another Scion xB

The first gen ('04 to '06) are pretty bullet proof. Second gen (08 to 15) had head gasket/oil leakage issues the first few years, but '12 to '15 are okay.

I just rent a small apartment, but I do bundle. I'm just not ready to go car free. My mother died of breast cancer at my age (69), but her sister made it to 96, cancer free! If I can make it 80, that would be nice.