Thanks for all the great advice, I figured that the comp/col is cheap because I don't have a history of claims and the car isn't worth that much if they were to cut me a check, minus the $1,000 deductible. like I said my comp/col isn't even 1/5 of my total premium, I do like the idea of dropping collision and keeping Comp, although I do garage it for at least 12 hours a day, so that IMHO really lessens the likelihood of something happening.
When to drop full coverage auto insuracne?
- Thread starter zach1900
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Speaking from experience...
Keep in mind that if your car is in good/great shape and it ends up being totaled in an accident, you won't likely get as much as you think you will. The insurance company goes strictly by the numbers in terms of value. The extra care you took to keep your car in good shape doesn't factor in to their replacement cost.
Keep in mind that if your car is in good/great shape and it ends up being totaled in an accident, you won't likely get as much as you think you will. The insurance company goes strictly by the numbers in terms of value. The extra care you took to keep your car in good shape doesn't factor in to their replacement cost.
It's been an excellent car and doesn't show any signs of slowing down, but with a $1,000 deduct, and the car only being worth maybe a hair over 3x that amount, the ins. wouldn't give me much anyway, then they would raise my rates anyway, maybe self insurance isn't such a bad idea, I know these insurers have it down to the very last cent literally my premium ends in $XXX.23!
I'd suggest opening a new account at the bank, and keep "paying yourself" the amount of the comprehensive each renewal period. That way you carry some risk in the first few years before the value of your car and the amount in the savings account converge.
You can even think of the gap as your deductible!
If you had done this for the past 30 accident-free years, you'd have enough for a BMW by now
You can even think of the gap as your deductible!
If you had done this for the past 30 accident-free years, you'd have enough for a BMW by now
Originally Posted By: zach1900
I've had Erie auto ins. for a few years, they've been giving me the best price , I have checked with others at renewal and they still beat them.
+1000. Been with Erie 30 years, great rates great service.
Johm
I've had Erie auto ins. for a few years, they've been giving me the best price , I have checked with others at renewal and they still beat them.
+1000. Been with Erie 30 years, great rates great service.
Johm
I keep it unless the vehicle is worthless, its so cheap.
Originally Posted By: DriveHard
Originally Posted By: Anies
I'm of the mindset of keeping it, though typically some will say after 10 years drop one or both. Insurance is just that, insurance in case something happens. Collision and Liability are one of the things that people say to drop, but you never know when it might be needed.
Did you by chance try shopping around for cheaper insurance?
Don't you mean Collision and COMPREHENSIVE?
In Iowa Liability insurance is legally required to drive. You can not drive without it.
It's required in Nebraska to but there are a lot of drivers who don't have auto insurance. Heck, they don't even have a driver's license and some don't even have a valid registration.
Originally Posted By: Anies
I'm of the mindset of keeping it, though typically some will say after 10 years drop one or both. Insurance is just that, insurance in case something happens. Collision and Liability are one of the things that people say to drop, but you never know when it might be needed.
Did you by chance try shopping around for cheaper insurance?
Don't you mean Collision and COMPREHENSIVE?
In Iowa Liability insurance is legally required to drive. You can not drive without it.
It's required in Nebraska to but there are a lot of drivers who don't have auto insurance. Heck, they don't even have a driver's license and some don't even have a valid registration.
Absolutely drop the comprehensive and collision coverage on a car that is only worth a few thousand because it will get "totaled" even with a small accident. You may think the car is worth a few thousand but your insurance company will low ball the settlement on it to some super low value and after your $1k deductible you will get a check for close to nothing when it gets totaled. And I strongly suggest you pretend it was totaled this week and you find a way to start saving this month and save something every month to replace the car. If you can't save anything to replace it on a monthly basis you likely should not even own it. btw - this is meant to be general advice, absolutely no disrespect to OP.
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My threshold is $15,000 in vehicle value. Our vehicle savings repair/replacement fund has well over that in it should the need arise, and I'm willing to self-insure the collision portion. I take what others pay for collision and continue to add to the vehicle savings fund so that I earn the interest. So far I've never needed it in 50+ years of driving.
None of my current vehicles meet the value threshold, so I do not carry collision on any of my vehicles. I'd never carry collision on a vehicle that's only worth $5,000.
Our annual premium is less than $1,000/year for 4 vehicles.
None of my current vehicles meet the value threshold, so I do not carry collision on any of my vehicles. I'd never carry collision on a vehicle that's only worth $5,000.
Our annual premium is less than $1,000/year for 4 vehicles.
Originally Posted By: John_K
Originally Posted By: zach1900
I've had Erie auto ins. for a few years, they've been giving me the best price , I have checked with others at renewal and they still beat them.
+1000. Been with Erie 30 years, great rates great service.
Johm
Ditto.
Originally Posted By: zach1900
I've had Erie auto ins. for a few years, they've been giving me the best price , I have checked with others at renewal and they still beat them.
+1000. Been with Erie 30 years, great rates great service.
Johm
Ditto.
I'm wondering about this same thing. The 2011 Regal is now paid off; the double payments I was making will go straight into savings for a while. My insurance with the Lizard People is ridiculous. So it might well be worth my while to drop collision and keep comprehensive, with a $1000 deductible?
Originally Posted By: Nate1979
What is your car worth replacement value and how much is the additional insurance?
According to KBB, my car is worth in private-party sale some $11K. At a dealer, I'm sure, a bit more. Now I have to consult my current policy to see what my collision coverage is, then ask the potential new insurer what my rate would be if I dropped that.
If I made this switch and my car were totaled, I could certainly make a good-sized down payment on another Buick Regal a bit newer -- a big enough DP so that I could pay off the newer car in 2 years, as I've done with this one. So the idea would be, I put into savings not only the double payment I've been sending on the Regal, but the savings on the insurance. If something bad were to happen, I'd be okay.
(And please, no lectures from anybody about "If you can't pay cash for the car, you can't afford it." I could do that -- but I have better uses for my money.)
What is your car worth replacement value and how much is the additional insurance?
According to KBB, my car is worth in private-party sale some $11K. At a dealer, I'm sure, a bit more. Now I have to consult my current policy to see what my collision coverage is, then ask the potential new insurer what my rate would be if I dropped that.
If I made this switch and my car were totaled, I could certainly make a good-sized down payment on another Buick Regal a bit newer -- a big enough DP so that I could pay off the newer car in 2 years, as I've done with this one. So the idea would be, I put into savings not only the double payment I've been sending on the Regal, but the savings on the insurance. If something bad were to happen, I'd be okay.
(And please, no lectures from anybody about "If you can't pay cash for the car, you can't afford it." I could do that -- but I have better uses for my money.)
I just when through this process last month when I bought the 2006 Ford Five Hundred w/110K miles for $5K. I wanted comp but was debating about adding collision. When I learned adding it with a $500 deductible was only $64 per year I ran with it. Even if I totalled it and was alive it would buy me a $3K car if I was broke.
In these parts if not picky one can find OK daily drivers starting at $3K and a lot of nice cars (not hot 4 door trucks) in the $5K-$10K range by doing some shopping.
45 years ago I wrecked my car and did not have cash to buy anything. I borrowed $500 from dad and picked up a 1965 Chevy four door something. Then I said never again to not being able to afford a drivable car should I have an accident.
In these parts if not picky one can find OK daily drivers starting at $3K and a lot of nice cars (not hot 4 door trucks) in the $5K-$10K range by doing some shopping.
45 years ago I wrecked my car and did not have cash to buy anything. I borrowed $500 from dad and picked up a 1965 Chevy four door something. Then I said never again to not being able to afford a drivable car should I have an accident.
Time to renew with The Lizard People or to jump ship -- Liberty Mutual offers a bit less of a premium. My collision coverage on the now-paid-off car is $424 a year, but to save money I've set my deductible to $1000. Is it worth my while to drop the collision part of the policy?
I like the $1000. deductible. You don't save much more by dropping collision completely.
Most BITOG types take good care of their vehicles so keeping the car is desirable, should their be repairable damage.
Most BITOG types take good care of their vehicles so keeping the car is desirable, should their be repairable damage.
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Originally Posted By: cjcride
I like the $1000. deductible. You don't save much more by dropping collision completely.
Most BITOG types take good care of their vehicles so keeping the car is desirable, should their be repairable damage.
True. After I posted I did some research. Generally it's a matter of "Is the annual premium greater than or equal to the value of the vehicle minus the deductible?" My car is worth about $11K. Minus the $1K leaves $10K. That's not something I want to shell out should the car be totaled. So at the moment $424 could bring me $10K in the wrong set of circumstances.
I'll see if Liberty M. can match or beat The Lizard with the coverage I have now.
I like the $1000. deductible. You don't save much more by dropping collision completely.
Most BITOG types take good care of their vehicles so keeping the car is desirable, should their be repairable damage.
True. After I posted I did some research. Generally it's a matter of "Is the annual premium greater than or equal to the value of the vehicle minus the deductible?" My car is worth about $11K. Minus the $1K leaves $10K. That's not something I want to shell out should the car be totaled. So at the moment $424 could bring me $10K in the wrong set of circumstances.
I'll see if Liberty M. can match or beat The Lizard with the coverage I have now.
Kestas
Staff member
At this point I would recommend dropping collision. The insurance company doesn't care how well you maintained your car. They just go by the book when settling a claim. At this point, your Corolla isn't worth much to them.
I dropped collision on my 01 Sable a few years ago. It had 60K and was worth about $4-5K on the market. I call it "self-insuring."
I dropped collision on my 01 Sable a few years ago. It had 60K and was worth about $4-5K on the market. I call it "self-insuring."
I dropped collision on my 1995 Escort more than 10 years ago. The annual premium just for collision was around $300, and they told me that if I totaled it they were only going to give me $700 for it. Made the decision really easy.
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