Considering Dropping Collision Coverage

[Nick1994]

There was a thread last year about dropping full coverage insurance, so this is similar but a little different circumstance.

I’ve paid off my 2018 Genesis G80. It’s a pretty expensive car to insure, yes I’ve shopped all around for insurance and this is as good as it gets. I’m considering dropping collision coverage but I’d have to keep comprehensive coverage, as glass insurance is a must here in Phoenix. I’d max the comprehensive deductible (in Arizona, there’s a $0 deductible for glass claims regardless) and doing all of this would save about $87 a month. I’ll keep the car for about 2 more years so I’d be pocketing around $2k in premium savings by then, which would go towards the purchase of my next car.

Do you guys think it’s worth it?

 

[cptbarkey]

Shop around. There is little benefit to having loyalty to insurance companies. I consider firing my insurance company every renewal.

Some might disagree, but I am saving more by not combining my homeowners w/ car insurance. What was normal in the past has changed.

 

[Rand]

What happens if an illegal hits you.
or random druggie with no coverage.

I'd keep it.. its a predictable expense vs wiping your car out 20k?

 

[Danno]

What's the retail value of your car?

 

[AZjeff]

^ Great and relevant question right there (both of them). You have to ask yourself if you can absorb the loss if you total the car vs paying the $2k over the next 2 years. I couldn't drive a $20k car in Phoenix traffic without collision but I'm old and conservative.

"Do you feel lucky, punk?"

 

[andrew_j]

Is losing the entire value of a 2018 G80 doesn't impact you financially then drop collision.

Also in minor accident you like negotiating with insurance companies to get paid and have the spare time and energy go for it.

 

[Cujet]

What happens if an illegal hits you.
or random druggie with no coverage.

I'd keep it.. its a predictable expense vs wiping your car out 20k?

They have no skin in the game and get away with it. That needs to stop. I won't pay because they can't behave.

I'm dropping my expensive coverages. No sense in all my retirement income going to insurance companies.

 

[Propflux01]

What happens if an illegal hits you.
or random druggie with no coverage.

I'd keep it.. its a predictable expense vs wiping your car out 20k?

Uninsured motorist should take care of that.

 

[FZ1]

There was a thread last year about dropping full coverage insurance, so this is similar but a little different circumstance.

I’ve paid off my 2018 Genesis G80. It’s a pretty expensive car to insure, yes I’ve shopped all around for insurance and this is as good as it gets. I’m considering dropping collision coverage but I’d have to keep comprehensive coverage, as glass insurance is a must here in Phoenix. I’d max the comprehensive deductible (in Arizona, there’s a $0 deductible for glass claims regardless) and doing all of this would save about $87 a month. I’ll keep the car for about 2 more years so I’d be pocketing around $2k in premium savings by then, which would go towards the purchase of my next car.

Do you guys think it’s worth

 

[wlk]

Keep it, I insure all my vehicles with full coverage even though they are 20 to 30 yrs old. It is worth it even though they are older, one hit and your back into payments and being upside down.

 

[FZ1]

There was a thread last year about dropping full coverage insurance, so this is similar but a little different circumstance.

I’ve paid off my 2018 Genesis G80. It’s a pretty expensive car to insure, yes I’ve shopped all around for insurance and this is as good as it gets. I’m considering dropping collision coverage but I’d have to keep comprehensive coverage, as glass insurance is a must here in Phoenix. I’d max the comprehensive deductible (in Arizona, there’s a $0 deductible for glass claims regardless) and doing all of this would save about $87 a month. I’ll keep the car for about 2 more years so I’d be pocketing around $2k in premium savings by then, which would go towards the purchase of my next car.

Do you guys think it’s worth it?

No. Too expensive to repair. Raise your collision deductible to save some premium dollars and call it good.

 

[JavierH19]

Funny insurance rates are brought up as I switched to progressive from state farm just yesterday to get a lower rate, saved $318 a year. For $87 a month it's worth it but shop around first with and without that included and think about raising your deductible amount to 1000 which I have to save.

They take advantage of those that don't run away. But it's not a bad idea to drop that if you're a good driver which nowadays is someone that isn't on their phone and keeps something of distance.

 

[fantastic]

Keep paying for the next 2 years of ownership. Frustrating as It may be if you're relying on trading it in within two years you need to pay up to cover your hide.

 

[CKN]

Shop around. There is little benefit to having loyalty to insurance companies. I consider firing my insurance company every renewal.

Some might disagree, but I am saving more by not combining my homeowners w/ car insurance. What was normal in the past has changed.

No..there is a benefit for loyalty. Recently-Insurance Companies have started penalizing for "jumping around" . It may or may not affect a quote you received...but it is "a thing".

 

[Pew]

What happens if your car gets totaled the day after you cancel full coverage?

 

[demarpaint]

You have to ask yourself if you can afford to replace the car in the event of a total loss w/o causing you a crippling financial heartache. All losses hurt, my point being will it cause a you financial nightmare to replace? If the answer is yes, rethink it.

 

[demarpaint]

Shop around. There is little benefit to having loyalty to insurance companies. I consider firing my insurance company every renewal.

Some might disagree, but I am saving more by not combining my homeowners w/ car insurance. What was normal in the past has changed.

I agree! I had Geico they got greedy, I switched to a State Farm bundle. State Farm get greedy, I busted up the bundle and went to The Hartford for the cars and left the house with State Farm. I saved a ton of money. As soon as The Hartford gets greedy I'll dump them. I've said this numerous times here, familiarity breeds contempt with insurance companies, shop around! They're in business to make money, my job is to save money.

 

[CarbonToast]

Keep it, I insure all my vehicles with full coverage even though they are 20 to 30 yrs old. It is worth it even though they are older, one hit and your back into payments and being upside down.

Full coverage doesn't bring the car back. If the car is worth $3k and there is $6k in damage. You only get paid out $3k.

Remember, you can just save that money and pay to have your car fixed if needed.

 

[dishdude]

I wouldn't drop it on a car that new, valuable and expensive to repair. The last two cars I owned without collision were the 2005 Corolla and 2001 Sonoma. They were worth nothing and I could put the front end back together on either for $100 in used parts.

 

[Nick1994]

I think you guys are right, I’ll keep the full coverage but raise my deductibles.

I already shopped around for insurance. Even went to an independent insurance agency and they couldn’t touch my rates.

Uninsured motorist should take care of that.

Uninsured motorist only covers medical expenses, not property damage. I learned that last October when I was in a hit and run with my Jeep.