Not at all. You crash the car hard and it requires $5,000 of repairs. Fully covered - $2400 down Partial Cover - $5,000 down If you have enough cash flow to drop $5k when needed, then don't insure it. If on the other hand a $5k bill would require a loan to fix, then get the insurance. Largely insurance isn't about the car, its about how much you are willing to pay to avoid a crippling repair/replacement bill. If the guy is hurting for cash badly enough that he needs the $1400 for other stuff, you can bet that he won't be able to pay for large scale repairs out of pocket without hurting even more.