Optimal Finance Daily · Friday, July 3, 2026
The speaker suggests that for older cars, liability-only insurance may be more cost-effective than comprehensive coverage. They cite a rule of thumb: if the annual cost of full coverage exceeds 10% of the car's value, it may not be worth the expense.
“I am saving money on insurance because I didn't buy comprehensive coverage. The value of my car simply doesn't justify it.”
“I've read that a good rule of thumb is that you should have liability only insurance if the annual cost of full coverage exceeds 10% of your car's value.”
“At that point, the extra coverage may not be worth the added cost of paying for more than liability only insurance.”