At what point do you drop full coverage?

[Elkins45]

At what value (either in absolute $$ or as a % of purchase price) do you decide to drop collision and/or comprehensive coverage on a vehicle? I just have liability on my cheapest vehicles but still have full coverage in the newest ones because they still hold enough value it would hurt to replace them. What’s your decision process on this?

 

[Leo99]

About when the insurance premium is over 10% of the vehicle's value.

 

[skyactiv]

I owned a 91’ Dodge Monaco eons ago I bought from a friend for $750. I had liability but no comprehensive on it.

 

[Thebigm]

At what value (either in absolute $$ or as a % of purchase price) do you decide to drop collision and/or comprehensive coverage on a vehicle? I just have liability on my cheapest vehicles but still have full coverage in the newest ones because they still hold enough value it would hurt to replace them. What’s your decision process on this?

When you can't afford to repair or replace the car without insurance

 

[Nick1994]

When you can replace the car and it not be that big of a deal financially.

On the 2007 Sonata I do keep Comprehensive coverage, but at the highest deductible of $2,000. This is so I can have glass coverage as well (needed in Phoenix). It actually has a cracked windshield now that I need to file a claim for. About $10 a month for comprehensive and glass coverage.

 

[DemoFly]

The elite technique is to never own a vehicle that requires full coverage.

If the vehicle is worth less than 3 (or 5) years of premiums. Just take it off. It's not like the insurance company is going to help you, anyway. They're going to do everything in their power to make an out of pocket a better financial decision for you.

 

[paulri]

I don't have a set formula here, but I do have it on the two vehicles that would cost several thousand to replace (my Sienna & Highlander). When I took over ownership of the 98 Camry with 260K miles on it, the insurance company, in case of accident, was only going to give me $1500, and I would save $300/yr by not having comp/collision on the car. So I declined comprehensive on the Camry.

For me the issue really wasn't a percentage of original value--it was more a matter of, having to shell out big bucks to replace those two cars (I probably wouldn't be comfortable buying the same model year used somewhere, so replacing them would mean I'd shell out a lot more money for late model year cars). So I definitely wanted something to bring the cost of the new car down if I were to total one of those other two cars--the payment from the insurance company. But a policy that would get me $1500 or so for the Camry, was just not that big a deal, so I was willing to roll the dice and save $300 a year on that. So I guess part of it, was how much I could save by not paying for comprehensive.

 

[daves87rs]

When you can replace the car and it not be that big of a deal financially.

On the 2007 Sonata I do keep Comprehensive coverage, but at the highest deductible of $2,000. This is so I can have glass coverage as well (needed in Phoenix). It actually has a cracked windshield now that I need to file a claim for. About $10 a month for comprehensive and glass coverage.

Pretty much this. Especially with thr crazy increases in insurance rates now…..

 

[miden851]

generally financial gurus advocate when your premiums exceed 10% of your current car's value after deductible, then its time to drop the full coverage.

 

[macarose]

There are so many ways you can slice this apple...

1) Liability insurance should be based on your savings. Can you already pay for a replacement that's similar to the one you have without experiencing any real economic hardship? Great. Now go to the second question.

2) Does the policy make economic sense? I know people who have spent $2,000 a year in insurance on a $6,000 car. Absolutely pointless! There are things you can do right now besides liability that bring your policy down even further.

3) Do you drive less than 5,000 or 2,500 miles a year? Can you couple your homeowners insurance with your car insurance? Are you willing to take an online defensive driving course? Contact your insurance company and tell them you want to lower your premium. Unhappy? Get quotes from other places and compare.

 

[ATex7239]

If the car is worth less than $5000 I’d consider dropping it, but I’d probably keep it if worth more.

The Hyundai only has liability and road side assistance. It is a couple thousand dollar vehicle with +200K and some fender benders. In the words of Drago from Rocky 4, “If he dies, he dies.”

 

[Jetronic]

Immediately.

 

[demarpaint]

When you can't afford to repair or replace the car without insurance

Exactly. It is a number the car owner has to be comfortable with. I like high deductibles too to keep the premiums down while I carry full coverage. I also like to have high liability and umbrella coverage on the house and cars. Especially in this day and age.

 

[350Rocket]

At what value (either in absolute $$ or as a % of purchase price) do you decide to drop collision and/or comprehensive coverage on a vehicle? I just have liability on my cheapest vehicles but still have full coverage in the newest ones because they still hold enough value it would hurt to replace them. What’s your decision process on this?

I added it to my truck this year and it's 19 years old. Realized I couldn't find a similar replacement for much under $10,000. And it was dirt cheap to add even with rental coverage.

 

[repairman54]

I always keep comprehensive coverage. For glass coverage and Bambi coverage.

 

[joekingcorvette]

A lot of insurance companies charge about as much for full coverage as liability. I keep full coverage on all my vehicles. Even my 2012 Civic gets full coverage.

 

[Mackelroy]

At what value (either in absolute $$ or as a % of purchase price) do you decide to drop collision and/or comprehensive coverage on a vehicle? I just have liability on my cheapest vehicles but still have full coverage in the newest ones because they still hold enough value it would hurt to replace them. What’s your decision process on this?

when you drop collision coverage, normally lose theft also.

look for non publicly traded insurance companies, you can normally cut the rate in half


Ive seen in the past progressive or Geico, $600 to $1000. Where a non publicly traded company less than $300 for same coverage

 

[andrew_j]

At what value (either in absolute $$ or as a % of purchase price) do you decide to drop collision and/or comprehensive coverage on a vehicle? I just have liability on my cheapest vehicles but still have full coverage in the newest ones because they still hold enough value it would hurt to replace them. What’s your decision process on this?

When the value or use of the vehicle lost is not even a factor or impactful in your life. This includes not at fault accidents as collecting from an individual or even company can be challlenging even after not at fault accident. Your time has value..

Companies can lowball and delay till you cave. If you don’t need vehicle then obviously a different story.

 

[Cujet]

About when the insurance premium is over 10% of the vehicle's value.

That’s an acceptable method. I like it

 

[dfarr67]

I have the same issue on a 15 Accord, but there is a TON of wildlife colisions around this area.