[quote=spdrun]Of course insurance cost changes if you don’t own — if you buy for cash, you can drop collision/comprehensive and just carry state minimum liability.[/quote]

Dropping collision and comprehensive on a brand new $40k car is one of the stupidest things one can do…. almost as stupid as carrying only the minimum liability insurance if one has meaningful amount of net worth worth protecting…

No one in their right mind would spend $40k+ on a new car and then simply not get collision and comprhensive. That thought process is only for people use to buying really old beater car that are disposable… (Even in the case of a beater car, it might even make sense to get comp/collision… if you’re like me with multiple cars, fully insuring one beater car with $0 deductible comp/collision is an extra $50/year, but for the times you rent a car and you waive the optional insurance, you end up have a $0 deductible on the car rental too IF you were to get into an accident…because your best comp/collision coverage would take effect)

Any financial advisor that suggested that one should drop down to the minimum liability coverage while maintaining a $1million+ net asset portfolio, should fired immediately because he is a moron, especially if one lives in sue happy CA, NY, NJ.

The only reason why one would consider getting mimimum liability coverage is he/she has no money/net worth worth protecting…. If that’s the case, there’s a high probably that person isn’t in the market to buy a $40k car with cash, or if he/she is, it would be an incredibly stupid financial decision… making this discussion about insurance costs pointless.

With most normal people, who find the rational reason for decent insurance coverage, there is practically no difference for identical coverage whether the car is purchased with cash or financed.