Since my wife and I got married, we've had 2 automobiles. We've always carried comprehensive auto insurance on the car that was worth the most, and only carried liability on the cheaper car. Our reasoning was that if we caused an accident in the cheaper car, liability insurance would cover the costs associated with replacing or fixing the other person's property, and we would be able to get by until we could replace our car.
My previous job was about 10 miles from home, and there were several guys who live close to me who also work at the same office. We regularly carpooled, and if I had car trouble, I still had a way to get to work.
I recently started a new job that is about 25 miles away, and no longer carpool. I drive the cheaper car, and realized that if I got in an accident, we would be in a bind because we're currently focused on paying off our more expensive car.
I called our auto insurance company to find out what it would cost to add comprehensive and collision insurance. Based on the age of the car (it's a 2000 Plymouth Neon, worth a couple of thousand dollars), they said it would only cost an additional $100 per year. I promptly sent in my payment. This upgrade added towing assistance and car rental fees if I am involved in an accident. I now have peace of mind that I can still get to work if my cheaper car is involved in an accident.
What are your thoughts on carrying comprehensive versus liability insurance? Leave your comments below.
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