As stated already by one poster, it is a simple probability calculation. You have a 100% chance of saving $800 per year. The probability that you will total both of these cars in a year (or even in their remaining useful life) is too low to consider. Let's say the probability of totaling one of them in any given year is 1/60. I pick this number more or less out of the air by guessing the average driver totals one car in their 60 year driving career. If we assume the more expensive one gets it, your probable loss is 7500/60 in the first year and will decline quickly as the value of the car depreciates further. For me it is a no brainier. Drop it.
When do you drop collision insurance?
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Originally Posted By: Ethan1
Originally Posted By: Ethan1
Are you making stuff up?
Originally Posted By: supton
I have not dealt with totaling out a vehicle
So you don't have any firsthand knowledge of how this process works, but you're going to post about it anyway. I see a lot of this on BITOG.
I have made a couple of claims, but not totaled a car.
As pointed out by others, the point of the insurance company is to make money off you. It's a calculated risk, but one in which they will always win.
Originally Posted By: Ethan1
Are you making stuff up?
Originally Posted By: supton
I have not dealt with totaling out a vehicle
So you don't have any firsthand knowledge of how this process works, but you're going to post about it anyway. I see a lot of this on BITOG.
I have made a couple of claims, but not totaled a car.
As pointed out by others, the point of the insurance company is to make money off you. It's a calculated risk, but one in which they will always win.
Originally Posted By: wkcars
I just dropped comprehensive on my 3 year old car, basically i figured i don't really care if the car gets dents and dings anymore since there's already some and if it gets major damage i can afford to pay for the repairs myself...plus i'm also betting that i'm less likely to damage my own car.
I wouldn't drop comprehensive on a 3 year old car, at least not where I live. Far too likely to have a deer accident, which is treated as a comprehensive claim. In fact, I'd be more likely to drop collision than comprehensive because the last dozen close calls to an accident have all been with animals, including one which ran into the side of my car this year, and I had another incident where a whole herd crossed in front of me that I still don't know how
I escaped. Plus Kansas can get some pretty big hailstorms which can do much more than a few dings. I think you're taking a big gamble.
I just dropped comprehensive on my 3 year old car, basically i figured i don't really care if the car gets dents and dings anymore since there's already some and if it gets major damage i can afford to pay for the repairs myself...plus i'm also betting that i'm less likely to damage my own car.
I wouldn't drop comprehensive on a 3 year old car, at least not where I live. Far too likely to have a deer accident, which is treated as a comprehensive claim. In fact, I'd be more likely to drop collision than comprehensive because the last dozen close calls to an accident have all been with animals, including one which ran into the side of my car this year, and I had another incident where a whole herd crossed in front of me that I still don't know how
I escaped. Plus Kansas can get some pretty big hailstorms which can do much more than a few dings. I think you're taking a big gamble.
I don't know if insurance will pay a larger amount fora totaled car which was in excellent condition, but they sure as heck will pay a lot less for one that was below average, cosmetically. First hand experience
A few years ago my wife's Lexus RX300 was totaled when a 95 year old man got confused and t-boned her legally parked car doing about 55. He had State Farm and they were great. They had a small amount of discretion to adjust pay-out for condition. Ours was mint and they gave us the max. It wasn't much more than the standard amount but it made me feel better. It had brand new tires and I had just done some major work, eg timing belt, struts, etc. SF considered this normal maintenance which did not add any value. I argued to no avail.
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I don't know about other states but here in Kansas comp and collision are so cheap to add to my insurance it is almost a no brainer even on my 20 year old car. Hail storms on the plains don't just dent cars they total them.
I have had a car totaled and condition does matter. The insurance company is almost always guaranteed to low ball their first offer. They do this because people don't know any better and will take the offer.
Just like condition matters when buying a car it matters when getting a settlement as well. The payout should be able to buy the same car in the same condition as the one that was lost. You wouldn't pay the same money for a beat up used car as one that was cherry.
My car was immaculately maintained and I insisted that the payoff be enough to buy the same car in the same condition. It took about a month before they finally made a offer that covered my car %100.
I have had a car totaled and condition does matter. The insurance company is almost always guaranteed to low ball their first offer. They do this because people don't know any better and will take the offer.
Just like condition matters when buying a car it matters when getting a settlement as well. The payout should be able to buy the same car in the same condition as the one that was lost. You wouldn't pay the same money for a beat up used car as one that was cherry.
My car was immaculately maintained and I insisted that the payoff be enough to buy the same car in the same condition. It took about a month before they finally made a offer that covered my car %100.
Originally Posted By: DerbyDave
I don't know about other states but here in Kansas comp and collision are so cheap to add to my insurance it is almost a no brainer even on my 20 year old car. Hail storms on the plains don't just dent cars they total them.
I have had a car totaled and condition does matter. The insurance company is almost always guaranteed to low ball their first offer. They do this because people don't know any better and will take the offer.
Just like condition matters when buying a car it matters when getting a settlement as well. The payout should be able to buy the same car in the same condition as the one that was lost. You wouldn't pay the same money for a beat up used car as one that was cherry.
My car was immaculately maintained and I insisted that the payoff be enough to buy the same car in the same condition. It took about a month before they finally made a offer that covered my car %100.
Doesn't work that way in Pa.
I don't know about other states but here in Kansas comp and collision are so cheap to add to my insurance it is almost a no brainer even on my 20 year old car. Hail storms on the plains don't just dent cars they total them.
I have had a car totaled and condition does matter. The insurance company is almost always guaranteed to low ball their first offer. They do this because people don't know any better and will take the offer.
Just like condition matters when buying a car it matters when getting a settlement as well. The payout should be able to buy the same car in the same condition as the one that was lost. You wouldn't pay the same money for a beat up used car as one that was cherry.
My car was immaculately maintained and I insisted that the payoff be enough to buy the same car in the same condition. It took about a month before they finally made a offer that covered my car %100.
Doesn't work that way in Pa.
Originally Posted By: supton
Originally Posted By: Ethan1
Originally Posted By: Ethan1
Are you making stuff up?
Originally Posted By: supton
I have not dealt with totaling out a vehicle
So you don't have any firsthand knowledge of how this process works, but you're going to post about it anyway. I see a lot of this on BITOG.
I have made a couple of claims, but not totaled a car.
As pointed out by others, the point of the insurance company is to make money off you. It's a calculated risk, but one in which they will always win.
No, most auto insurance companies are subsidized by the parent company's homeowner's business. The insurance companies publish this information on a quarterly basis; you can verify it for yourself.
Originally Posted By: Ethan1
Originally Posted By: Ethan1
Are you making stuff up?
Originally Posted By: supton
I have not dealt with totaling out a vehicle
So you don't have any firsthand knowledge of how this process works, but you're going to post about it anyway. I see a lot of this on BITOG.
I have made a couple of claims, but not totaled a car.
As pointed out by others, the point of the insurance company is to make money off you. It's a calculated risk, but one in which they will always win.
No, most auto insurance companies are subsidized by the parent company's homeowner's business. The insurance companies publish this information on a quarterly basis; you can verify it for yourself.
A question for the people here who say it's worth it to keep comprehensive or collision:
Have you gotten back more $$ than you put in over your life?
If so, let me know what insurance company you're with because their actuary is incompetent. I would like to switch over to them
Have you gotten back more $$ than you put in over your life?
If so, let me know what insurance company you're with because their actuary is incompetent. I would like to switch over to them
DerbyDave said:
The one thing to not forget too from all your hypothetical calculations the deductible.
The numbers quoted probably are most likely not for a $0 deductible, so that means you aren't covered for $5000 or $7500.
If your deductible ends up being like a $1000 deductible for a $5000 car, your break even math is off by 20%; and you basically get no coverage for any ticky-tacky or moderate damage except for a complete totalling.
If you push the math all the way and get suckered into a deal like a $5000 deductible for a $5000 car, cause it's cheaper; realize you're paying for basically worthless insurance as you're getting nothing back in a claim.
The numbers quoted probably are most likely not for a $0 deductible, so that means you aren't covered for $5000 or $7500.
If your deductible ends up being like a $1000 deductible for a $5000 car, your break even math is off by 20%; and you basically get no coverage for any ticky-tacky or moderate damage except for a complete totalling.
If you push the math all the way and get suckered into a deal like a $5000 deductible for a $5000 car, cause it's cheaper; realize you're paying for basically worthless insurance as you're getting nothing back in a claim.
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I keep full coverage on a a older Honda Civic mainly because of theft. The 2000 does not have the chip in the key fob and is in the top ten most stolen autos.
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