Insurance on a 2003 Honda Accord

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harvestmoon
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Insurance on a 2003 Honda Accord

Post by harvestmoon »

Hi Bogleheads!

Any advice on how much insurance I should get for a fairly scratched up 2003 Honda Accord EX Sedan 4D? Any advice would be greatly appreciated!
jaMichael
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Re: Insurance on a 2003 Honda Accord

Post by jaMichael »

I have no collision on my 2006 Toyota RAV 4 but plenty of liability coverage, including a $2 million umbrella policy.
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harvestmoon
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Re: Insurance on a 2003 Honda Accord

Post by harvestmoon »

Thank you! I was actually thinking of an umbrella policy and at least good amount of liability on the car so that makes sense. The KBB value of the car is approx. $4,500.00.
LiterallyIronic
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Re: Insurance on a 2003 Honda Accord

Post by LiterallyIronic »

harvestmoon wrote: Mon Jun 10, 2024 11:30 am Hi Bogleheads!

Any advice on how much insurance I should get for a fairly scratched up 2003 Honda Accord EX Sedan 4D? Any advice would be greatly appreciated!
I drive a 2004 Dodge Stratus (obligatory SNL: https://www.youtube.com/watch?v=Oy0n7IS_JmI). I just carry liability on it. Full disclosure, I also only have liability on our 2016 Kia Soul (and have always only had liability on it, since purchasing it in 2020). How much liability should you have? That's the question. I believe we have $50,000 in Property Damage (as that should be more than enough to replace almost any vehicle we could accidentally hit - that is to say, if we were to cause an accident, the odds of it being a car worth more than $50,000 seems extraordinarily unlikely). I'm not sure off the top of my head how much Bodily Injury coverage we have. I should probably check on that.
Jack FFR1846
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Re: Insurance on a 2003 Honda Accord

Post by Jack FFR1846 »

It always depends on the cost. My 10 year old Wrangler has full coverage along with high liability. While it's old, my yearly insurance cost is $325.

Something always worth keeping (again, depending on cost) is comprehensive. When you're driving and that truck with the sighn "not responsible for damage caused by rocks falling from truck" drops a rock on your windshield and because it's a Honda costs $1000 to replace, you're going to want insurance to pick that up. And by the way, yes, those trucks ARE responsible, so get their license plate and report them to your insurance company.

Collision, again, what's it cost? If it's $50 a year with $1000 deductible, then if someone slams into you and then runs, you'll get the money that your car is worth. But if it's $2500, then maybe think about that.

The numbers all matter.
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turtlebug
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Re: Insurance on a 2003 Honda Accord

Post by turtlebug »

LiterallyIronic wrote: Mon Jun 10, 2024 11:49 am I believe we have $50,000 in Property Damage (as that should be more than enough to replace almost any vehicle we could accidentally hit - that is to say, if we were to cause an accident, the odds of it being a car worth more than $50,000 seems extraordinarily unlikely). I'm not sure off the top of my head how much Bodily Injury coverage we have. I should probably check on that.
IMO, you are underinsured. Many cars of the road today are worth north of 50K and you might wish to consider what would happen if you got into a multivehicle collision, for which you were fully or partially at-fault.
ncbill
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Re: Insurance on a 2003 Honda Accord

Post by ncbill »

Yes, I always keep comprehensive because it is inexpensive even with a low ($100) deductible.

And I've had a deer commit suicide on one of my vehicles in recent history which comprehensive covered.
sailaway
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Re: Insurance on a 2003 Honda Accord

Post by sailaway »

harvestmoon wrote: Mon Jun 10, 2024 11:45 am Thank you! I was actually thinking of an umbrella policy and at least good amount of liability on the car so that makes sense. The KBB value of the car is approx. $4,500.00.

You umbrella will probably dictate how much liability you have on the car.

We have full coverage on our older car. A bit silly, since the car isn't worth much more than twice the deductible, but DH hasn't been willing to change and we only plan to have a car for a few more months at this point. I have seen deer damage and learned the hard way that a person having a medical emergency is generally not liable for any damage inflicted. I am sure there are plenty of freak accident ways to damage one's car.
bombcar
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Re: Insurance on a 2003 Honda Accord

Post by bombcar »

It's a question of what you can self-insure.

I would say that maximum on the liability/uninsured, etc so you can get your umbrella.

A car that cheap probably doesn't need comprehensive/collision - unless it is so cheap you basically get it "for free".
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Watty
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Re: Insurance on a 2003 Honda Accord

Post by Watty »

For liability your umbrella policy(which you should have) will have a minimum requirement of probably a couple of hundred thousand.

For collision and comprehensive get quotes and then decide. One advantage of having these is that if you are hit and it is someone else's fault then your insurance company will take care of going after them.
harvestmoon wrote: Mon Jun 10, 2024 11:45 am The KBB value of the car is approx. $4,500.00.
.....
Any advice would be greatly appreciated!
You said any advice. :D

22 years is a good run for a car and if you can get that much for it then it might make sense to go on and replace it with a newer and safer car if you can afford it.

Electronic stability control(ESC) is a very important safety feature which was not required until 2012 so that car likely does not have ESC. There have been lots of other car safety advanced in the last 22 years too.

I always look at the cost of car owners ship as a cost per year for depreciation and non-routine maintenance. You will have other expenses of car ownership like tires, gas, routine maintenance, etc but those will be roughly the same with whatever car you have.

If the Accord lasts another 3 years then dies when it is 25 years old it will have cost you around $1,500 a year in depreciation and possibly some non-routine maintenance too.

There are all sorts of ways to crunch the numbers but my general car owning stragety have been to buy modest new cars like Corollas, Camrys, Accords, and Civics, which have a reputation to reliability and do not depreciate quickly then sell them when they were around 10 year old even if they were not giving me any trouble. I would then buy a similar new car. A ten year old well maintained Toyota or Honda will usually sell for a surprising amount which made replacing it with a new car relatively affordable.

That is not the cheapest way to own a car but the yearly cost of depreciation and non-routine maintenance was similar to the $1,500 a year which your Accord could be costing you. Unless I got unlucky I rarely needed to pay for much non-routine maintenance.

I don't have a clue what sort of budget you have and if you have a very tight budget but it would be at least worth looking at replacing it while you can still get a non-trivial amount for it. You may not be saving as much as you might be assuming by keeping it so you really need to look at your long term numbers.

One advantage of replacing it when you are not in a hurry is that you can find a decent deal on your next car. I have needed to replace a car in a hurry and that can be stressful and expensive. I figure that being able to take my time and wait for a good deal usually saves me a couple of thousand dollars.
deltaneutral83
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Re: Insurance on a 2003 Honda Accord

Post by deltaneutral83 »

I don't necessarily worry as much about my driving ability but I know the second I drop comprehensive (or "other than collision") a hail storm will happen or some teenager will use my car as target practice in a parking lot and drive off. You just have to be prepared to lose the $4,500. In this case a hail storm probably wouldn't even lower the value for a Honda that runs.
dukeblue219
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Re: Insurance on a 2003 Honda Accord

Post by dukeblue219 »

Jack FFR1846 wrote: Mon Jun 10, 2024 11:51 am It always depends on the cost. My 10 year old Wrangler has full coverage along with high liability. While it's old, my yearly insurance cost is $325.
How on Earth is that possible?

Yeah, I know, geography.
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harvestmoon
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Re: Insurance on a 2003 Honda Accord

Post by harvestmoon »

Wow you all are so knowledgeable, thank you so much! I have to admit, I was a bit overwhelmed thinking about it at first, but you have all been so helpful. I should mention I live in NJ so insurance is def not the cheapest here haha.
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vnatale
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Re: Insurance on a 2003 Honda Accord

Post by vnatale »

I bought my 2004 Honda Accord in December 2013. Have never had Collison insurance on it. Have not had it on any my cars for probably about 35 years.

I do have umbrella insurance so I have fairly high liability limits to qualify for the umbrella insurance.

I have, though, had comprehensive for decades. It's relatively inexpensive and it's paid for windshield replacement and a car nearly being totaled by a collision with about a 20 pound baby deer.
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
Outer Marker
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Re: Insurance on a 2003 Honda Accord

Post by Outer Marker »

harvestmoon wrote: Mon Jun 10, 2024 11:45 am Thank you! I was actually thinking of an umbrella policy and at least good amount of liability on the car so that makes sense. The KBB value of the car is approx. $4,500.00.
Zero coverage on the car. Plenty of liability coverage for yourself. If you're getting an umbrella policy, that will dictate how much liability coverage you need to carry on the car. Probably in the realm of $200-300K. Best to get them both from the same company, e.g. GEICO or Progressive.
Jack FFR1846
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Re: Insurance on a 2003 Honda Accord

Post by Jack FFR1846 »

dukeblue219 wrote: Mon Jun 10, 2024 1:52 pm
Jack FFR1846 wrote: Mon Jun 10, 2024 11:51 am It always depends on the cost. My 10 year old Wrangler has full coverage along with high liability. While it's old, my yearly insurance cost is $325.
How on Earth is that possible?

Yeah, I know, geography.
And that was after it was increased. Last year, it was $275.

2nd lowest risk town in Massachusetts.
Multi-car discount
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Topic Author
harvestmoon
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Re: Insurance on a 2003 Honda Accord

Post by harvestmoon »

I really am leaning towards zero coverage other than liability and getting an umbrella policy. I'm assuming it depends on net worth, etc. but what's a reasonable amount to get with the umbrella policy?
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Re: Insurance on a 2003 Honda Accord

Post by Outer Marker »

Enough to motivate the insurance company to mount an effective defense and/or settle all likely claims. $1M is probably adequate. I feel better with $2M. The cost for the extra $1M wasn’t significant. Like $200/yr for $1M, $300/yr for $2M.
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vnatale
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Re: Insurance on a 2003 Honda Accord

Post by vnatale »

Outer Marker wrote: Tue Jun 11, 2024 7:33 pm Enough to motivate the insurance company to mount an effective defense and/or settle all likely claims. $1M is probably adequate. I feel better with $2M. The cost for the extra $1M wasn’t significant. Like $200/yr for $1M, $300/yr for $2M.
For me going from $1,000,000 to $2,000,000 was exactly twice the premium.
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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harvestmoon
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Re: Insurance on a 2003 Honda Accord

Post by harvestmoon »

This is all good to know, thank you!
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