Expert: Anne - 9/24/2009

Question
Hello,

My husband owns a 94 Ford F-150 4x4.  It's in decent condition.  He drives it to/from work and an occasional long drive here and there. I don't know what it's worth, however we have had it insured with full coverage since we owned it in 96.

My question is how do I determine whether or not to pay for full coverage or PLPD?  Thank you in advance.

Answer
Hello Tammy,

This is a very good question.

Look around your local market and see what a 94 Ford F-150 4x4 goes for (similar condition, similar mileage, similar options). Take that number and reduce 30 to 40 % (that is what insurance companies will argue the vehicle sells for - insurance companies will not pay replacement value, but Acutal Cash Value, which includes depreciation).

After you get that reduced number, then take your deductible into account. Then what you have left is what you would get from insurance. Would this be worth it for you? Do you think is too little that it will not even be worth it?

On the other hand, would you have any money to replace this vehicle yourself should it be in a total loss?

Only you can answer this questions, but if you follow the formula above, you should get a closer understanding of what you would get and help you make that decision.

For more information about auto insurance coverage, please see:

http://www.auto-insurance-claim-advice.com/

Good Luck
Anne
http://www.quirogalawoffice.com/