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Old 09-20-2023, 08:00 AM
 
28 posts, read 12,846 times
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I have a 2008 Acura TL with 93,000 miles on it. I keep it garaged six months per year and put only about 4,000 miles on it each 12 months. I'm wondering if I should keep Collision insurance on it. My deductible is currently $500. Edmunds says trade in value is about $4,000; cost by a dealer would be about $9,000.
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Old 09-20-2023, 01:32 PM
 
Location: on the wind
23,252 posts, read 18,764,714 times
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Questions to ask yourself:

a) Would I have the $ to pay for repairs myself if the car ends up damaged in an accident? Remember, some idiot can plow into you at any moment regardless how little or how much you drive.

b) Would I even want to?
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Old 09-20-2023, 01:42 PM
 
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Your car sounds like a nice car for how old it is. It would suck if something were to happen to it. With that being said, in the grand scheme of things, it's really not worth that much money.

If it doesn't cost much extra for the full coverage it might be worth keeping it, but if you'd rather roll the dice and hang on to your money vs. giving it to the insurance company, I'd be alright with that decision also.

It might come down to a coin flip as to which is the financially smarter option.
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Old 09-20-2023, 05:47 PM
 
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Also consider that due to the lower ACV, you may be closer to a Total Loss decision than repairs.
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Old 09-20-2023, 07:16 PM
 
Location: Phoenix, AZ
6,340 posts, read 4,892,353 times
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Quote:
Originally Posted by ADK44 View Post
I have a 2008 Acura TL with 93,000 miles on it. I keep it garaged six months per year and put only about 4,000 miles on it each 12 months. I'm wondering if I should keep Collision insurance on it. My deductible is currently $500. Edmunds says trade in value is about $4,000; cost by a dealer would be about $9,000.
Which means you can probably buy a comparable replacement for $7000 or so.

In addition to "do you have the money to repair it if an uninsured driver damages it," you also have to ask yourself do you have the money to replace it immediately, without borrowing money, if an uninsured driver totals it or you are at fault. Or do you have a spare car to drive if yours is totaled or in the repair shop.

You also have to understand that any substantial savings for dropping comprehensive and collision (not worth dropping one without the other) takes many years to accumulate. If you start now and have a wreck in the first year or few, you'll probably be sorry. If you manage to go 20 years without a wreck or manage to only get hit by insured drivers, you will see some substantial savings.

I have been buying dependable low priced daily drivers for several decades and omit buying comprehensive and collision. My current car cost me $4500 and I have the funds to replace it for about that amount if necessary. I also have a pickup truck as a back-up. It would also cost me about $4500 to replace.

Where's my threshold? Dunno. Maybe $5000 to $6000. Certainly not $7000.

Before you decide I suggest you look at comparable cars for sale by owners, not dealers, then decide what your threshold would be.

Remember, self-insuring your car can be quite lucrative over a long period of time, but shelling out thousands of dollars can be quite painful if you haven't set aside a fund for another car.

Up to you.
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Old 09-21-2023, 10:49 AM
 
17,303 posts, read 12,228,591 times
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Missing some key info. How much is the collision portion of your premium? Collision portion on our 08 vehicle is $11/month. At that cost we're comfortable keeping it.
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Old 09-21-2023, 05:01 PM
 
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^ Exactly.
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Old 09-28-2023, 06:45 AM
 
17,263 posts, read 21,998,333 times
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How much do you save and are you financially able to replace the car in the event of a crash/theft?

I know a guy that has a waterfront 14mm house with no insurance on it. He has the net worth to survived in the event of a catastrophe and the true value is in the lot anyway.

So if you are saving $500 a year on the lesser insurance and you don't have a crash for 10 years then you will likely come out ahead. Of course if the wreck happens next week you won't save anything!

An employee I had years ago HATED insurance. He always kept bare minimum coverage because he felt "he" was a good driver. Well he got sideswiped in the rain by an 18 wheeler and the truck didn't stop. Suddenly he had a wrecked car and needed $4000 in used parts alone. He was dating a girl that worked in insurance and she told him to get a quote with full coverage, shockingly enough it was only a few hundred more of course he still kept basic coverage because "what are the chances of something happening again?!?! A DUI crash years later would cost him 45K, they garnished his bank account and he was over the top crazy about that one.
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