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Old 05-02-2017, 09:49 AM
 
Location: Lake Arrowhead, Waleska, GA
1,088 posts, read 1,462,543 times
Reputation: 1611

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Quote:
Originally Posted by Dawter View Post
I recently paid off my vehicle. The trade-in value is around $7000.
Should I continue to have full coverage on it? I'm not sure how to figure this.
Thank you.
You'll get a lot of different advice about this and some of it is valid. Ultimately, you need to determine if you can afford to replace the car (and lose the $7k value) if you are in an at-fault accident and the car is a total loss.

But a lot of people don't realize that it's not an all-or-nothing decision. When I was an insurance agent (still licensed), I usually encouraged my customers to keep Comprehensive coverage even if they chose to drop Collision. Typically, Comp only costs about 25-30% as much as Collision coverage. For example, the annual premium for Collision may be $300, but the Comp premium is only $75-90/year.

The easiest way to look at is that Collision pays for damage to your vehicle that is YOUR fault. Comprehensive pays for damage to your vehicle is that is beyond your control (weather, vandalism, theft, fire, glass breakage AND striking an animal such as as a bird or deer). If you choose to drop Collision coverage and save $300/year, you can reduce your risk by learning to be a safer driver, parking in the garage every night, driving less and similar changes in behavior. But there's not much you can do to reduce those risks that are out of your control, which makes that $75-ish/year Comprehensive coverage worth every penny!

Also, when you're looking to trim insurance costs on an older car, consider dropping Rental Car reimbursement, Towing, Roadside Assistance and possibly even Medical Payments (if you have good health insurance). Optional features on policies like Better Car Replacement, Vanishing Deductible and Accident Forgiveness (and similar extras) are also a great way to trim cost from a policy.

Just make sure that you keep adequate levels of liability AND Uninsured/Underinsured Motorist!
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Old 10-17-2023, 08:03 PM
 
Location: Sylmar, a part of Los Angeles
8,338 posts, read 6,421,491 times
Reputation: 17452
Remember if the other driver is at fault his insurance pays for your car.
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Old 10-22-2023, 11:49 PM
 
Location: Phoenix, AZ
6,341 posts, read 4,894,516 times
Reputation: 17999
You drop comprehensive and/or collision when you have enough cash set aside to immediately replace your car when nobody else pays.
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Old 10-23-2023, 08:00 AM
 
14,400 posts, read 14,292,176 times
Reputation: 45726
Quote:
Originally Posted by adjusterjack View Post
You drop comprehensive and/or collision when you have enough cash set aside to immediately replace your car when nobody else pays.
I've dropped it in the past for old vehicles. However, with prices getting higher for used cars I question if I would ever drop it at this point. Replacing even a fifteen year old vehicle is more expensive than most people imagine. I would invite all those considering dropping these coverages to price the replacement cost of their cars.
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Old 10-24-2023, 01:23 PM
 
6,340 posts, read 2,891,514 times
Reputation: 7273
Quote:
Originally Posted by markg91359 View Post
I've dropped it in the past for old vehicles. However, with prices getting higher for used cars I question if I would ever drop it at this point. Replacing even a fifteen year old vehicle is more expensive than most people imagine. I would invite all those considering dropping these coverages to price the replacement cost of their cars.
My $13k 2019 Elantra got stolen and wrecked so I just replaced it with a $12K 2019 Chevy Cruze. Both reclaimed titles so the price was well under book. Hopefully I can get money back from Hyndai in the class action suit they lost for not putting immobilizers in the cars. I will get my Maserati fully insured. If I ever buy one.
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Old 10-24-2023, 01:36 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,694 posts, read 58,012,579 times
Reputation: 46171
How much is your comp? It covers a lot of incidentals for often a low cost., probably worth keeping forever. Maybe raise your deductible. I carry comp on my $35 car. It would be tough to replace. Chat with your agent, they might have good ideas on your appropriate coverage.

I buy lunch once / yr for my agent.. has saved me thousands of dollars.
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Old 10-26-2023, 06:54 AM
 
17,285 posts, read 22,013,755 times
Reputation: 29617
Do the math.........do you save $200 or $900 a year?

How long to reclaim the savings. You would need 35 years at $200 a year to get your $7000 car back in the event of a crash/theft. But at $900 a yr you would be even in less than 8 years of driving without an incident.

Of course you could have an accident tomorrow and your savings calculation is out the window!
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Old 10-26-2023, 07:01 AM
 
Location: Vermont
11,758 posts, read 14,647,352 times
Reputation: 18523
The thread is six years old, but still relevant.

Comp tends to be pretty cheap, so I don't mind carrying it. Here in Vermont, and probably plenty of other places, one of the big reasons you might have a comp claim is for hitting a deer: might not total the car, but possibly expensive body work.
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Old 10-28-2023, 07:56 AM
 
Location: In a perfect world winter does not exist
3,661 posts, read 2,938,725 times
Reputation: 6748
Comp and Underinsured motorist coverage is something I will always carry for my 2 cars. Not that they are anything special. Its a 09 and 16 Nissan cars. They are the cheapest and best value options in the car insurance market.
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Old 11-28-2023, 06:37 PM
 
Location: Florida and the Rockies
1,970 posts, read 2,234,402 times
Reputation: 3323
Related question:

My second "summer driver" car (2011 wagon) was declared a total loss by the insurer. They paid out in full. It was a comprehensive claim (rock damage, not a collision). I kept the car and used my own $ to repair it.

Since the incident but before the claim closed, I received my semi-annual insurance renewal, which I paid in full. It included collision and comprehensive. The insurer later indicated that after they "totalled" the car, it would no longer be covered for collision. The whole process has taken months btw -- the incident was in August, I renewed in September, the car was fixed in October, I was just reimbursed in November.

Now that the claim has been paid by the insurer, and I would only continue liability coverages on the car (since they won't cover collision/ comprehensive) -- do I ask for the pro-rata refund of the collision/ comprehensive cost since the August incident? Nothing has happened to the car (it lives in a garage in the winter), but there is also apparently no ongoing insurance for those coverages.
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