At what point to drop comp/collision insurance?

Joined
Oct 30, 2002
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Recently moved to Michigan... insurance rates seem to be higher here, so I am rethinking whether to drop comprehensive/collission insurance on my 530i. Realistically, the car is probably worth $5K, if that. Comp/collision would be around $400 extra per year, even if I choose somewhat high deductible levels. What would you do?
 
Joined
May 1, 2012
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Indiana
Quattro, I just carry twice the state minimum on all my vehicles. My Accord and Subaru are both worth $13-$14k. I even dropped the medical coverage on me and my passengers...that's what health insurance is for. But when you pay cash for vehicles, you can do this. As a result, my insurance premiums are ultra low. I pay $180/year for my 1990 K1500, $250/year for my Accord, and $260/year for my Subaru.
 
Joined
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Thats not really comparable phishin, as its highly dependant on multi-line discount, Driver history, credit(sometimes), AREA you live in... etc. I pay 700$/year with discount here but my area of ohio went up 25% in the last few years I also carry 100/300/100, would not like loosing my house and possessions if sued or accident scammed.. I checked into dropping coverage to get the bare min I would need.. its about 25% cheaper.. one rock to the windshield which cost 800$ a couple years ago would be over a years insurance.
 
Joined
Dec 11, 2009
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Battle Creek, MI
Quattro I live in MI as well and I don't carry it on vehicles that aren't worth much, but as mentioned only do so if you can afford another car. I did find out that Progressive has good rates online for Michigan so may be worth checking out if you haven't already done so.
 
Joined
May 26, 2014
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Columbus,Nebraska
If I keep driving my 04 Camry, I plan to drop the collision and comprehensive if it won't affect the discounts I receive. I haven't made an insurance claim in over three decades, but one never knows. Way too many individuals are fiddling with their cell phone and other electronic gadgets while driving. Following too close is also prevalent in our city. It seems many drivers don't know or care about the three second following guideline.
 
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FWIW - I asked something similar a while back, so you'll have some additional responses: Thread: When do you drop collision? To me, it's a question of how much cost do you want to endure every 6 months versus what cost can you endure if you need a car tomorrow and what needs do you have for a car when it's "tomorrow". Next question is what do I think my odds are of needing coverage. We have 3 vehicles: '13 Cruze with a loan so no choice there '06 Cobalt - no comp or collision '99 Saturn - no comp or collision If the Saturn or Cobalt were gone tomorrow, it's not a real pain point in the short term since we only really need 2 vehicles. Additionally I'd think the Saturn is worth close to $0, so the only thing I'd be getting coverage for is glass. Comp with glass is $80/year and collision is $90/year both with $1000 deductible $0 glass). Cobalt is worth...? Not sure what it would be valued at, but it would not be terrible to go out and replace it tomorrow. Comp with glass $140/year collision $240/year, both $1000 deductible. For us, we do fall at the higher end of mileage a year 40K annual miles 2 people to and from work, congested area so that does create some concern for me, but not worth the premium if we need to replace. Liability side is a different story.
 
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I dropped collision on my 1995 Escort long ago. It was an easy decision since it was costing my nearly $300 per year on a car worth maybe $1000 at the time.
 
Joined
Sep 23, 2014
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Toronto Canada
Save your money so you could buy another car if need be. Insurance is like gambling, the odds over the long run are with the big companies, not the little guy. Act responsibly and save the money so this insurance is not needed. In the long run, this is much better.
 
Joined
Aug 5, 2011
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Southeast Michigan
Originally Posted By: HosteenJorje
I haven't made an insurance claim in over three decades, but one never knows.
I've had the CX-9 for four months and have already had two glass claims on it. It seems that there's no protection against dumper drivers who don't bother to sweep stones off their trailers prior to hitting the road. And I'm glad that some people can get cheap insurance, but try doing it in Michigan. When you're subsidising every idiot in Detroit who can't be expected to carry liability, insurance gets expensive.
 
Joined
Mar 16, 2004
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USA
There is a large convenience factor having it. If you get in a collision with party fault instead of wasting your time trying to collect and deal. You pay your deductible, get rental, fix your vehicle and let them collect your deductible back. $400 extra is quite steep. I believe I pay $400 for full coverage on my Acura MDX and $500 for full coverage on my 2005 Legacy($6k ish value).
 
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Originally Posted By: rjundi
If you get in a collision with party fault instead of wasting your time trying to collect and deal. You pay your deductible, get rental, fix your vehicle and let them collect your deductible back.
Again, it's Michigan we're talking about, here. If you get hit by another driver and it's their fault, it doesn't matter. Your insurance is paying, anyway.
 
Joined
Sep 22, 2013
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Georgia
I usually drop once I pay it off but the other company covers it if someone hits me. Don't you have no fault up there where your insurance covers it instead? That might be something to consider too.
 
Joined
Sep 23, 2008
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Ontario, Canada
It was easy for me to drop comp/collision on the Tracker as its just a transportation tool these days. I don't care about dents, or scratches, bumpers, or even windows really, they are all cheap at my local wreckers and if I get damage beyond swapping parts then it will go for scrap. You want your car to look nice, but would you pay 2-3k out of pocket for a minor corner hit repair? Or would you sell it for near nothing and buy something as nice and maintained well for $10k? Maybe the $400/year is really insuring you against a bigger purchase than simple replacement value of your current car?
 
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Wisconsin USA
Drop it at the point you can cover the loss out of pocket, whether that means the cost of repair or replacement value. You also have to consider the effect of filing a low dollar value claim on your premiums. If you file a claim on a low value vehicle just to recover a loss that you could pay yourself, your insurance rates will likely increase due to your unfavorable claim history.
 
Joined
Feb 23, 2007
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Grand Rapids, MI
Even though my Firebird is probably only worth around 5k, I keep full coverage on it. My insurance company mentioned that the repair costs on this vehicle are typically higher than other makes/models and recommended it, fwiw. I'm assuming the BMW would be expensive to repair as well.
 
Joined
Feb 23, 2007
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Originally Posted By: leeharvey418
Originally Posted By: rjundi
If you get in a collision with party fault instead of wasting your time trying to collect and deal. You pay your deductible, get rental, fix your vehicle and let them collect your deductible back.
Again, it's Michigan we're talking about, here. If you get hit by another driver and it's their fault, it doesn't matter. Your insurance is paying, anyway.
With plpd though, the claimants insurance company may still be able to subrogate from the at fault insured and cut you a check. Someone rear ended my girlfriend because they weren't paying attention, but her insurance company got the other company to pay her for the damages anyway.
 
Joined
Feb 28, 2010
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Imperial Valley, California
Seems you have many good answers here, but you know me QP I always have to say something haha. First, I think that BMW of yours may only have a KBB value of 5K BUT my guess is from your posts and all, my judgement of you is you keep that car in immaculate condition. So, you know the car is "worth" more than 5k. So do this, if the car means that much to you, that if it got hit and all, could you walk away and have no remorse? If you can just walk away, then dont get the insurance. If you love this BMW like a family memeber, then I would see if you can work the numbers somehow, and maybe skip starbucks a couple times a week and save that money for the end of the year. Just a thought, Jeff
 

Quattro Pete

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Joined
Oct 30, 2002
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Originally Posted By: ThirdeYe
I'm assuming the BMW would be expensive to repair as well.
Yes, that's part of the problem, too. An insurance company is never going to pay out more than the car's market value, so if the repair costs end up being expensive, they'll just total it and not pay for the actual repair costs.
 
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