The recommended insurance coverage for someone with an old car is up to $100,000+ in bodily injury liability insurance and $50,000 in property damage liability insurance per accident, given that the median net worth for Americans is around $121,000 and the average cost of a new car is about $48,000. The goal is to protect your assets from a lawsuit.
You should also carry comprehensive and collision insurance to cover your vehicle’s cash value unless the coverage costs around the same amount as your car is worth. If your vehicle is financed, your lender or lessor may require comprehensive and collision coverage regardless of your car’s age and value. Otherwise, you only need to have your state’s minimum required coverage.
Remember that only carrying the minimum coverage may not cover the full cost of medical bills, auto repairs, replacing your vehicle, or your assets if you are sued in the event of a car accident. So, it’s best to have a liability insurance limit equal to your total assets.
