Why consider full coverage car insurance?

Why consider full coverage car insurance, as opposed to liability only?
It depends on both the value of the car and your financial situation.

For example, a $5,000 car may not seem a likely candidate for full coverage, but if your financial situation is such that coming up with $5,000 to replace it is a hardship, you should invest in full coverage, in case you’re at fault in an accident or the car gets stolen.  If spending $5,000 to replace the car wouldn’t bother you, then don’t.

Also, you have to look at it like a gambler and assess the value proposition.  For example, let’s say you have an older Honda Accord that is now only worth $6,000.  Your #1 consideration is that this car is rated the most likely car to be stolen.  Your #2 consideration is that full coverage only costs $200 a year more. The payoff, if your car is stolen or totaled, results in a 30-1 ratio of return on your investment. That is, you would receive $6000 for your $200 investment. 

In general, the odds you’ll have an insurance driving event in a particular year, whether a rock through the windshield or an accident, are 15-1. In short, if replacing a car would be a financial hardship on you or the payoff ratio is high, you should get full coverage.