Do I need collision and comprehensive coverage on my car

[kijip]

when we own it outright, have $$ on hand to buy a new car if we needed to, it's now 5 years old, and worth maybe $,9000? We have not had any at fault accidents etc. It's not a huge cost to carry it, so maybe keeping it is best "just in case". But it's a big part of the cost of our insurance. And it's money we could save instead. Thoughts? Thanks in advance.

[Snow mom]

Well, I probably would keep it for a car that is worth $9000. We removed comprehensive from DH's car because it was worth maybe $2000. Then it got stolen and we found ourselves with nothing, which sucked. I think we would have come out ahead having paid the insurance for the time we didn't have it and then getting the claim at the end (although I don't know how a claim would have affected our future rates...) The most important thing is that you can afford a replacement if needed, but I'd also consider the cost vs. how you would really handle it if you woke up tomorrow and found the car G.O.N.E.

[jjordan]

I would keep it on a car worth $9000. Both of our cars are in the sub-$2000 category and we dropped it. If one of our cars was stolen we'd be okay with just one car anyway.

[salsah]

when we bought a new car, we dropped it on our old cars (they were 8 and 9 yrs old at the time). they just weren't worth insuring -- especially since we had an extra car, we figured that we would be okay if something happened to one of them. our new car is now 4yrs old and as long as it is our primary car, we are keeping it fully insured.

[codex57]

Even if it's not mandatory, you always want liability. That's so you're covered in case you hit someone else. Just cuz you haven't had any accidents doesn't mean you won't. And the other car might be worth more than your savings.

Collision is up to you, but it's usually such a low premium that I think it's worth it to just keep it. Especially at $9,000.

[maestramommy]

$9K is still a lot of money. I'd keep the insurance. The only time I'd drop it and only have liability is if the car was a clunker, super old and worth $2k or less.

[o_mom]

Even if it's not mandatory, you always want collision. That's so you're covered in case you hit someone else. Just cuz you haven't had any accidents doesn't mean you won't. And the other car might be worth more than your savings.

Collision is up to you, but it's usually such a low premium that I think it's worth it to just keep it. Especially at $9,000.


You mean liability?

Our dropping point for collision is around $5K. That's the point we feel comfortable taking on the risk of having to replace the car ourselves. We keep the comprehensive because it covers fire, theft and glass breakage and is very low cost compared to collision.

[wellyes]

Get the $500 deductible collision. It's cheap. $500 is easy to hit in a fender bender - panels and paint etc.

[codex57]

You mean liability?

Our dropping point for collision is around $5K. That's the point we feel comfortable taking on the risk of having to replace the car ourselves. We keep the comprehensive because it covers fire, theft and glass breakage and is very low cost compared to collision.

Oops, yeah, I meant liability.

[vonfirmath]

You mean liability?

Our dropping point for collision is around $5K. That's the point we feel comfortable taking on the risk of having to replace the car ourselves. We keep the comprehensive because it covers fire, theft and glass breakage and is very low cost compared to collision.

This. We don't have collision on either of our cars because we can replace $5K if we need to.

[teedeedee]

I agree with pp that 9k is still quite a bit of money. I'd keep it insured for a while still...

[kijip]

Even if it's not mandatory, you always want liability. That's so you're covered in case you hit someone else.

Never considered dropping liability, we have very high limits for liability because I don't ever want to have to use my umbrella or leave myself vulnerable for a lawsuit financially.

[kijip]

I decided that since I was scratching my head about the insurance bill for the next 6 months to just start shopping. We switched companies, to a lower risk tolerance provider, and cut the bill in half, keeping the collision and comprehensive. It's pretty cheap.

[BillK]

when we own it outright, have $$ on hand to buy a new car if we needed to, it's now 5 years old, and worth maybe $,9000? We have not had any at fault accidents etc. It's not a huge cost to carry it, so maybe keeping it is best "just in case". But it's a big part of the cost of our insurance. And it's money we could save instead. Thoughts? Thanks in advance.
Will it be a strain to go buy a new car if yours is totalled? Would it bother you to pay 800-900 for a new windshield if yours got broken? Every person's situation is different - all you can do is weight the pros and cons of dropping physical damage coverage and decide what's best for you.

Also - if you get hit and the other company is jacking you around on a settlement - then you're at their mercy when you don't have physical damage coverage. If you carried it - you could always turn it in on your own policy and let your insurer deal with subrogating the at-fault party for what they paid out.

I have a couple very well off clients with BRAND new paid for cars with liability only and no physical damage at all. Personally I think it's nutty but all I can do as their agent is give them my advice - it's up to them whether they want to take it or not.

[vonfirmath]

I have a couple very well off clients with BRAND new paid for cars with liability only and no physical damage at all. Personally I think it's nutty but all I can do as their agent is give them my advice - it's up to them whether they want to take it or not.

That's called self-insuring and more power to them if they can afford it.

Boeing self-insured for as much as possible because they found it was cheaper for them.

[codex57]

I decided that since I was scratching my head about the insurance bill for the next 6 months to just start shopping. We switched companies, to a lower risk tolerance provider, and cut the bill in half, keeping the collision and comprehensive. It's pretty cheap.

Nice! Comprehensive costs so little with my ins co that I never really considered deleting it. I mean, if my bill is $700 for the year, maybe $70 of that is comprehensive.

[vonfirmath]

Nice! Comprehensive costs so little with my ins co that I never really considered deleting it. I mean, if my bill is $700 for the year, maybe $70 of that is comprehensive.

That's 10%...

[HannaAddict]

Nice! Comprehensive costs so little with my ins co that I never really considered deleting it. I mean, if my bill is $700 for the year, maybe $70 of that is comprehensive.

Yeah that. Comprehensive is always a small fraction of what the total cost is and yes, for insurance, 10% is a drop in the bucket when you consider what an put of pocket loss could cost. Using Katie's car, a much more inexpensive car than the SUVs and minivans many on the board drive, she would be wise to pay even $70 a year to avoid a $9,000 loss. Not quite like Figuring out if it makes sense to pay points on a mortgage, since there you have a break even point - but even keeping the collision on for a few years until the car is worth less would be a good plan. I would think about a higher deductible too. And if you need to replace a windshield, I found out the companies have two prices!- the insurance price and cash price. Big difference, much less for cash.

[HannaAddict]

Never considered dropping liability, we have very high limits for liability because I don't ever want to have to use my umbrella or leave myself vulnerable for a lawsuit financially.

Not to mention, it is illegal to drive without insurance in our fair state! Liability is required to protect the other drivers. Not that everyone follows the law . . .

:)

[Fairy]

I would definitely keep it on a car worth that.