At what point do you drop collision insurance? 100k miles?

[JEDI]

2005 Mazda3i, 100k miles.

Kelly Blue Book says it's worth $7300 in Good condition. (Private sale)

I'm paying $500/6 months for liability/comprehensive/collision.

And what point is it not worth it for collision insurance?

 

[bruceb]

When the car's value is less than what you would pay for the premiums. I might drop collision, but keep comprehensive, in case of fire or theft. Comprehensive is usually very cheap. You can also drop collision after your car loan is paid off, or at about the 7 - 8 year life of a car. Value starts going down more around then.

 

[JEDI]

hm.. found this:
http://www.ehow.com/how_2090070_know-drop-collision-insurance.html

Drop collision insurance if the annual fee for the coverage is 10 percent or more of the car's value. For example you can probably drop the coverage if your car is worth $5,000 and your annual collision coverage costs $500.

Good rule of thumb?

 

[exdeath]

Whenever you feel the car is cheap enough or that you have enough income that you won't care if you have to replace the car should something happen to it.

 

[highland145]

I'm a little more paranoid than that 10% rule. I dropped it on the Prelude when KBB said it was worth zero because of the excessive miles and when State Farm refused to give me a $$ amount they would pay "in case" to justify me keeping full coverage. 12 years, iirc.

 

[dawp]

when it's paid off. most people I know only have full coverage because of financing.

 

[SearchMaster]

Whenever you feel the car is cheap enough or that you have enough income that you won't care if you have to replace the car should something happen to it.

This. When you can comfortably self-insure, do so.

 

[lurk3r]

Depends on alot, including how likely you are to have a claim. The Audi I just bought I paid $5k for they want $540 every 6 months, that's a big fat no way in my book.

Will you have the cash on hand to get a replacement car if yours is totalled? If not, you need coverage. If you cannot swing the few thousand to repair it if you get rear ended, you need full coverage.

 

[JEDI]

I'm a little more paranoid than that 10% rule. I dropped it on the Prelude when KBB said it was worth zero because of the excessive miles and when State Farm refused to give me a $$ amount they would pay "in case" to justify me keeping full coverage. 12 years, iirc.

i found my 6month policy.
collision ($250 deductible) $160

it includes Pet injury?!?! hm.. i own no pets

since my car is worth $7k, it'll be a few years till it drops down to $1.6k.
but then again, i might drop collision when the car drops down to 10% of the deductible (ie: $2500)

 

[Paperlantern]

When the car's value is less than what you would pay for the premiums. I might drop collision, but keep comprehensive, in case of fire or theft. Comprehensive is usually very cheap. You can also drop collision after your car loan is paid off, or at about the 7 - 8 year life of a car. Value starts going down more around then.

No reason to tell him to keep comprehensive.. comprehensive is REQUIRED on ALL cars. Granted some people still drive without it, but, whatever.

My car is a 99 Camry with 205,000 miles, KBB says its worth about $3,500 to a private party. I still have full coverage with a zero deductible on it. It only costs about $20 a month more than comprehensive alone because of having been with the insurance company for 10+ years and having multiple cars on the policy. Someone smacks me in the ass, I'm not gonna be able to pony up $1000 for a new rear end, but the insurance company sure as hell will. And I wont have a penny out of pocket. I'm thinking another 50,000 miles, and the car's value drops below 2k, i might drop collision, but without collision, you total a car, you get NOTHING, at least even on a beater, they'll give you 1000 or $1500. *shrug* Just depends on how much the difference is in premiums from person to person.

 

[Gibson486]

Whenever you feel the car is cheap enough or that you have enough income that you won't care if you have to replace the car should something happen to it.

yup. No math or rule of thumb involved.

 

[BurnItDwn]

In my case ... my previous car was only worth 2k trade in or 3k private party... Collision coverage was like $20 a month.

I kept the coverage, just in case... (had a 500 deductible.... ) ...

 

[paperfist]

hm.. found this:
http://www.ehow.com/how_2090070_know-drop-collision-insurance.html

Drop collision insurance if the annual fee for the coverage is 10 percent or more of the car's value. For example you can probably drop the coverage if your car is worth $5,000 and your annual collision coverage costs $500.

Good rule of thumb?

What if you total your car that was worth $5k and don't have the money to replace it?

 

[jlee]

No reason to tell him to keep comprehensive.. comprehensive is REQUIRED on ALL cars. Granted some people still drive without it, but, whatever.

My car is a 99 Camry with 205,000 miles, KBB says its worth about $3,500 to a private party. I still have full coverage with a zero deductible on it. It only costs about $20 a month more than comprehensive alone because of having been with the insurance company for 10+ years and having multiple cars on the policy. Someone smacks me in the ass, I'm not gonna be able to pony up $1000 for a new rear end, but the insurance company sure as hell will. And I wont have a penny out of pocket. I'm thinking another 50,000 miles, and the car's value drops below 2k, i might drop collision, but without collision, you total a car, you get NOTHING, at least even on a beater, they'll give you 1000 or $1500. *shrug* Just depends on how much the difference is in premiums from person to person.

Not everywhere.......

 

[Zorba]

Not everywhere.......

I think he is thinking of liability coverage, not sure why anywhere would require comprehensive (except when the car is financed).

Full coverage on my car costs an extra ~$50/ 6 months, so even though the car isn't worth a lot I keep it around so I don't have to worry about it. It is also really nice to know that if my car gets hail damage or hit, I can get it fixed without worrying about spending money on an older car.

 

[SparkyJJO]

Depends on alot, including how likely you are to have a claim. The Audi I just bought I paid $5k for they want $540 every 6 months, that's a big fat no way in my book.

Will you have the cash on hand to get a replacement car if yours is totalled? If not, you need coverage. If you cannot swing the few thousand to repair it if you get rear ended, you need full coverage.

What? If you get rear-ended, THEIR insurance should pay for your car, regardless of whether you have full coverage or just liability.

No reason to tell him to keep comprehensive.. comprehensive is REQUIRED on ALL cars. Granted some people still drive without it, but, whatever.

Not true. LIABILITY is required by law. Comprehensive is not. The only time comp and collision are required is if you have a loan on the vehicle, then the bank requires it so if you crash it they get their money.

 

[saratoga172]

Lol full coverage for a $1000 deductible for me is around $250-300 a month. Cheapest I've found. Thats for a 1996 Buick Riviera. I'm 20. Fuck all you young kids giving me a bad name. I've got no tickets whatsoever. Never even been stopped for speeding. "knocks on wood"

Edit: Weird. 3 months ago full coverage for a $1000 ded was over 250/month. Now a $250 ded is 120/month. $65 for liability vs the $90 I've been paying. Do rates usually drop that quickly for us young people?

 

[jlee]

Lol full coverage for a $1000 deductible for me is around $250-300 a month. Cheapest I've found. Thats for a 1996 Buick Riviera. I'm 20. Fuck all you young kids giving me a bad name. I've got no tickets whatsoever. Never even been stopped for speeding. "knocks on wood"

Edit: Weird. 3 months ago full coverage for a $1000 ded was over 250/month. Now a $250 ded is 120/month. $65 for liability vs the $90 I've been paying. Do rates usually drop that quickly for us young people?

Maybe you are remembering wrong.

 

[Bignate603]

What? If you get rear-ended, THEIR insurance should pay for your car, regardless of whether you have full coverage or just liability.

You assume that the other driver has liability, enough coverage, and doesn't drive away if they still can before you can get their info.

 

[avash]

You assume that the other driver has liability, enough coverage, and doesn't drive away if they still can before you can get their info.

You assume that you don't live in a state with no-fault. If so, then you are responsible for your OWN car, regardless of who's fault it is.

If you consider yourself a safe driver and willing to take the risk and just do comprehensive, you're screwed if you get in to an accident even if it's not your fault because your own insurance covers your car. Best you could get is asking the other party at fault to cover the deductible.

 

[JulesMaximus]

For me personally, it is usually right before some asshole with no insurance hits my car.

 

[theeedude]

When you can afford to replace it yourself without breaking a sweat financially. The other thing you gotta consider is the service. If you get hit by some jerk, you gotta deal with his insurance company directly. If you got comprehensive, you can deal with your company and let them work it out with the other dude's insurance. My thing is I jack up the deductible as much as possible to reduce premium. It usually doesn't cost that much more than liability alone. I pay $700/year on a 2006 Mazda3s.