Auto insurance question - do i need collision insurance?

[Guybrush]

My understanding is that Collision covers the cost to repair my car for accidents that are my fault. I was looking around and sites were saying that you should consider not getting Collision if your car isn't worth much - the premium over a few years may be more than the cost to replace the car.

Well that's definitely not my situation - I have a 2002 Jetta that's worth about 16 grand. But I've never had to file a report before (re: i'm a relatively safe driver), and it'll cut my insurance premiums almost in half. Is it a bad idea for me to cancel Collision?

 

[bunker]

Is it a bad idea for me to cancel Collision?

Yes. Remember, just becuase it may be the law that everyone has to have insurance, not everyone does. Whose going to pay your repair bill then?

Also, if you are financing your car, I can just about guarantee whoever you financed through requires it.

 

[Heisenberg]

On a 2002? Yeah, that'd be a bad idea.

 

[Cyberian]

You may not want to cancel it altogether, but you may want to look into raising your deductible to save some $$.

 

[Jombo]

if you don't consider your 16 grand car "not worth much" then save your money

something like that usually applies to junkers that you pick up for a grand or something.

how much is this half that you are going to save anyway?

 

[Thegonagle]

If you have a loan on the thing, then the bank requires that you carry full coverage.

If you own it free and clear, then you can do whatever you want. If you can afford the loss if you wreck your car, then don't insure it. If you can't afford the loss, then keep it covered.

 

[Guybrush]

Originally posted by: bunker

Is it a bad idea for me to cancel Collision?

Yes. Remember, just becuase it may be the law that everyone has to have insurance, not everyone does. Whose going to pay your repair bill then?

Also, if you are financing your car, I can just about guarantee whoever you financed through requires it.

Oh, Collision will pay for damage to my car if it's someone else's fault who doesn't haven't any insurance? I thought it would only cover accidents that were my fault.

It'll save me $800/yr.

 

[tm37]

Well you should also carry uninsured motorist.

That way you are covered if someone without Insurance whacks you.

What is your deductible at?

You might be able to cut a bit of cost by raising it to about 500

I have a 250 deductible because it only raised my rate about 50 bucks a year.

I pay about 900 a year for full coverage on two cars.

I have a 97 Dakota SLT Club cab $X$ and a 96 Neon.

Full on both with Uninsured Motorist.

Also here in MN most insurance incluses full glass coverage w/ zero deductable

 

[Guybrush]

My deductible just for Collision is $500 and my 6 mo premium on it is $399.

I'm 15,000/30,000 on Uninsured Motorist Bodily Injury. Hm, that doesn't cover property damage caused by an uninsured motorist?

Sheesh, they told me raising my Collision deductible to $1000 would only lower it $90/six months. Maybe it's cause i'm in Los Angeles.

 

[mugs]

Keep the collision coverage. Even though you are a safe driver, there's still that outside chance.