I’m buying a used car that isn’t worth a whole lot – just $5200 – and would like to know how much coverage I should get.  If I get full coverage, will I be paying too much for what the car is worth if I should get in an accident?


Damage to your car is covered by collision/comprehensive coverage.  When you own a low value car, you may decide that collision/comprehensive coverage is more expensive than is justified by the risk you are insuring against (damage to your car). The decision on collision/comprehensive coverage and the deductible amount is simply a cost v. benefit analysis.  However, the more important issue is making sure you are covered for the damage/injuries you cause to others (liability coverage) and for the damage/injuries others cause to you (uninsured/underinsured/medical payments coverage).  Make sure you talk with an insurance agent about what coverage limits are appropriate for your financial status.