Car insurance costs more than car is worth?

October 25th, 2009 by admin

One of my friends works a minimum wage job, and his car insurance for one year costs more than he paid for his 87 Mazda truck. He paid $1300 for the truck and his insurance is $1800 per year. Between insurance and gas, he is working just to drive the truck, he told me he is just going to drop the insurance on the truck, because the truck is a piece of crap and is not worth $1800 for just basic coverage. I tried to talk him out of it, but he said he is not paying that price to insure a piece of junk.

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    • 11 Responses to “Car insurance costs more than car is worth?”

    1. tonalc1 says:
      October 25, 2009 at 5:22 am

      He’s not solely insuring the car, he’s insuring himself against financial liability if he’s in an accident.

      It’s against the law to drive without insurance.

    2. Lover not a Fighter says:
      October 25, 2009 at 5:25 am

      If you mean basic coverage = liability, then he is mistaken. That is required by law. But if you mean more than liability then he is correct, never get more than liability for a junker / beater. It would be just cheaper if you wrecked it - to go and buy another car.

      Good luck…

    3. JBABy says:
      October 25, 2009 at 5:33 am

      with current gas prices, how can anyone afford insurance anyway???

    4. Mariselli says:
      October 25, 2009 at 5:45 am

      your friend isn’t doing too well right now but if he gets into an accident and kills someone without any insurance to help him foot the bill his life will REALLY be bad.
      He won’t know what hit him.
      @JBABy, over here in Europe we always paid 25 times what you pay for petrol, now it’s only about 3 times as much, you are still better off than us so stop complaining.

    5. entidtil says:
      October 25, 2009 at 6:12 am

      Insurance isn’t just for the vehicle, insurance also protects him from liability issues. If he doesn’t care about protecting his vehicle, he should drop everything but liability. He should NEVER drive without at least liability coverage.
      Note to tonalc1; Insurance IS NOT required in all US states. Wisconsin does not require auto insurance and there are other states too

    6. Lawnboy & Luna says:
      October 25, 2009 at 7:09 am

      I assume that he just has liability coverage, and yes his premium could exceed the value of his vehicle. Liability coverage even if it is minimal, will protect him should he be involved in an at-fault accident. If he does not have adequate coverage, he will still be legally liable for the damages. He cannot just walk away from his responsibility to pay.

    7. mbrcatz17 says:
      October 25, 2009 at 7:52 am

      Yes, well, there’s no limit to the number of ACCIDENTS he can have during a year! He could have one a week, potentially, that the insurance company would have to pay for!!

      That IS a major problem with young drivers, or people with bad driving records. The insurance costs more than the car is worth. ON the flip side, if he totals a new car, he’s going to have his wages garnished for the next however long it takes to pay off $25,000 with interest, if he’s driving without insurance. Plus, his plates will be revoked, and his license can be suspended.

      One way or another, he’s going to pay. It’s CHEAPER to pay the insurance. OR, he can take the truck off the road for six months, and get a bus pass or bicycle. LOL the green answer.

    8. ca_surveyor says:
      October 25, 2009 at 7:57 am

      THen, to put it bluntly, your friend is a fool.

      Assuming you are saying he intends to drop ALL of his insurance, then he is missing the fact that the insurance does not cover the vehicle, it covers his ass. If he is a fault in an accident, and sooner or later we are all at fault in some kind of accident, the outlook is grim.

      Tell him to picture the accident where he has just dented someones nice new Caddy. The one with $2,000 hubcaps.

      Now tell him to picture only getting half of his paychecks for the next 10 years as the court garnishes it.

      If he thinks he has a POS car now, ask him to imagine what he will be able to buy and drive then.

      …doesnt take a rocket scientist does it..?

    9. jane W says:
      October 25, 2009 at 8:08 am

      It is gonna take a while to find the answer for your question on internet.I provide a related and good resource here for your reference.http://car-insurance.online-tips.info/car-insurance-free.htm

    10. rigo g says:
      October 25, 2009 at 8:18 am

      I know your situation. I’t’s a number of factors. These people really helped me out they are at

      http://GetInsurance.u-shopper.com

      Good Luck.! I really hope they can help you like they did me!

      Rigo

    11. DAVE F says:
      October 25, 2009 at 8:28 am

      I guess $1800 is too expensive. You can easily find cheaper quotes in internet, for example here: http://autoinsurance.maclenet.com
      Guess he should switch to other insurance company.

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