Insuring Low-Use Vehicles

I have a 1990 Toyota Corolla. How much would basic insurance cost if I only drive about 5,000 miles per year?

Answer

If you want only bare-bones car insurance coverage, that usually means a liability-only policy. In that case, your policy would cover any injuries or damage you cause to other parties in an accident but nothing more. Liability-only policies tend to be very cheap, depending on how much liability protection you want. Because you drive so few miles each year, you would definitely qualify for the low-mileage discount with almost any insurer. You can save hundreds of dollars on premiums if your car is infrequently driven. In addition, you probably don’t need collision or comprehensive coverage because of the minimal cash value of your car. Given the age of your vehicle, you would be paying more for these coverages than the car is worth.