*thread sucks confirmed* Another myth dispelled: Drop collision on an old car

[StageLeft]

I repeated this one before, I admit. It goes that you have collision/comprehensive on your car but as it gets cheaper, let's say it's worth $2k, drop it because you don't want to pay for something so easily replaced. The issue is that this theory never takes into account the obvious fact that collision/comprehensive on an ancient car is incredibly cheap. So, yes, the potential loss is tiny but so is the actual coverage.

I could go into the numbers but you'll just have to take my word for it.

You're welcome, these myth-busting tips are free!

*thread sucks confirmed*

This is what you get for taking free advice on the internet. Let this teach you something.

 

[waffleironhead]

Yeah, after my grand am was hit by someone with no insurance, I learned that one the hard way. uninsured only covers bodily injury, so collision would have covered my rear. the few hundred I saved that year was not enough to cover the damage.

 

[MrWizzard]

Young drivers and what deductibles you carry make your myth dispelling powers null and void. So in some cases yes in some cases no.

 

[MrWizzard]

Yeah, after my grand am was hit by someone with no insurance, I learned that one the hard way. uninsured only covers bodily injury, so collision would have covered my rear. the few hundred I saved that year was not enough to cover the damage.

If your car was worth very little and you had no comp and coll there is a coverage called UMPD which would give you up to for example 3500 for your car if you were hit by a uninsured motorist and able to ID them. The coverage is a few dollars a year.

I would say your agent let you down. Get a better one.

 

[StageLeft]

Young drivers and what deductibles you carry make your myth dispelling powers null and void. So in some cases yes in some cases no.

Not really, you're just affirming that insurance rates are higher for young folks, as we know. But as their collision is higher so too are the chances of them needing it, so without it they are more likely to hit that big expense of insurance-less repairs if they eschew it.

 

[kornphlake]

I repeated this one before, I admit. It goes that you have collision/comprehensive on your car but as it gets cheaper, let's say it's worth $2k, drop it because you don't want to pay for something so easily replaced. The issue is that this theory never takes into account the obvious fact that collision/comprehensive on an ancient car is incredibly cheap. So, yes, the potential loss is tiny but so is the actual coverage.

I could go into the numbers but you'll just have to take my word for it.

You're welcome, these myth-busting tips are free!

Actually you'll have to go into the numbers for me to believe it, otherwise you're just making stuff up without proof. I'm already convinced otherwise, the burden of proof is yours.

 

[StageLeft]

Actually you'll have to go into the numbers for me to believe it, otherwise you're just making stuff up without proof. I'm already convinced otherwise, the burden of proof is yours.

I think you are being argumentative. It's ok with me if you don't believe me. I think you do anyway

 

[MrWizzard]

Not really, you're just affirming that insurance rates are higher for young folks, as we know. But as their collision is higher so too are the chances of them needing it, so without it they are more likely to hit that big expense of insurance-less repairs if they eschew it.

Well....I could go into the numbers but you'll just have to take my word for it.

 

[kalrith]

I think comp/coll on my '92 Cougar was (before I canceled it) like $10/month, so $120/year. My deductible is $1,000, and it's probably not worth much more than that. For the sake of argument, let's say it's worth $2k. Should I pay $120/year for a potential of a $1,000 pay-out? I don't think so.

Edit: I've been in two accidents in 13 years, so the likelihood of getting in one is small for me. Even if I did get in an accident, there's a good chance that I won't be at fault and the other guy's insurance will pay for it. That's what happened in my two previous accidents when I carried nothing but liability insurance yet didn't have to pay a dime for repairs.

 

[StageLeft]

Well....I could go into the numbers but you'll just have to take my word for it.

Touche.

 

[Turin39789]

I think my comp was around 600 for 6 months when I as younger. I think collision was another 400 / 6 mo. I bought the car for $500.

But this is all based on my poor memory.

 

[AstroManLuca]

Yeah, it really depends on what your car is actually worth and what the deductible is. If your car is really old and decrepit, you'll have to spend extra in order to get a deductible low enough to actually pay out anything if the car is totaled.

If your car is worth $3000, it might be worth it to get collision, depending on the cost of collision insurance and deductible. $500? Not so much.

 

[StageLeft]

I think my comp was around 600 for 6 months when I as younger. I think collision was another 400 / 6 mo. I bought the car for $500.

But this is all based on my poor memory.

Sometimes my thread suck. *shrug*

 

[Demon-Xanth]

If comp cost say, $500 more a year, and your car was worth $1000, and you have a $500 deductible. Drop it. If it costs $200/year and your car is worth $5000, keep it. Most people considering it are likely somewhere in between.

 

[kornphlake]

I think you are being argumentative. It's ok with me if you don't believe me. I think you do anyway

I'm not being argumentative for the sake of being argumentative, your claim that insurance is always a good value on an older vehicle is opposite what most people believe, backing up the claim with "you'll have to take my word for it" doesn't really drive home your point very well.

For certain people with certain vehicles it does make sense to purchase comprehensive and collision insurance, it's not always the case though. I'm willing to back up that claim with numbers. My saturn has a KBB of less than $1000, it doesn't matter what a policy with a deductible of $1000 would cost because I'd never get a pay out from the insurance. Dropping the deductible to $500 sent the insurance payment over $600 per year, do you see where I'm going with this. I'm best off not paying for insurance on this vehicle. Even if the vehicle was worth $2000 carrying a policy with a $1000 deductible only makes sense for a year or so, if that, the vehicle will depreciate to the point where you'll only get a few hundred dollars payout. I've shown you my numbers, now show me yours. How long will you pay for insurance before you've spent more than the potential benefit?

 

[StageLeft]

I'm not being argumentative for the sake of being argumentative, your claim that insurance is always a good value on an older vehicle is opposite what most people believe, backing up the claim with "you'll have to take my word for it" doesn't really drive home your point very well.

For certain people with certain vehicles it does make sense to purchase comprehensive and collision insurance, it's not always the case though. I'm willing to back up that claim with numbers. My saturn has a KBB of less than $1000, it doesn't matter what a policy with a deductible of $1000 would cost because I'd never get a pay out from the insurance. Dropping the deductible to $500 sent the insurance payment over $600 per year, do you see where I'm going with this. I'm best off not paying for insurance on this vehicle. Even if the vehicle was worth $2000 carrying a policy with a $1000 deductible only makes sense for a year or so, if that, the vehicle will depreciate to the point where you'll only get a few hundred dollars payout. I've shown you my numbers, now show me yours. How long will you pay for insurance before you've spent more than the potential benefit?

I will believe yours. 99% believe them, which is enough for me. I could play around online geico quote estimate for a while but I won't bother. I thus conclude my thread sucks. I am ok with that. Perhaps others can learn from my folly.

 

[Zargon]

I pay 8 bucks a month for comp with a 250 ded on my grand cherokee thats worth like 2-2500 bucks....totally worth it.

collision was more and I decided it wasnt worth it even though thats probably me being cheap

 

[v8envy]

If your car was worth very little and you had no comp and coll there is a coverage called UMPD which would give you up to for example 3500 for your car if you were hit by a uninsured motorist and able to ID them. The coverage is a few dollars a year.

I would say your agent let you down. Get a better one.

In my state, uninsured/underinsured motorist insurance does NOT cover your car, only bodily injury. If you're rear ended by a drugged out suspended license uninsured bozo in a BMW going 35mph (hypothetically speaking) you must file a claim against YOUR OWN CAR'S POLICY to get it repaired. If you don't have coverage, too bad. You're on your own for suing the penniless cretin to recover costs.

If you do have comprehensive then your insurance pays (deductible applies). The insurance company will eventually go after the other guy, and if the loser ever disgorges any money they have to return your deductible before hanging on to their chunk of change.

This is in Colorado. What state has uninsured motorist coverage applying to property, BTW?

 

[MrWizzard]

In my state, uninsured/underinsured motorist insurance does NOT cover your car, only bodily injury. If you're rear ended by a drugged out suspended license uninsured bozo in a BMW going 35mph (hypothetically speaking) you must file a claim against YOUR OWN CAR'S POLICY to get it repaired. If you don't have coverage, too bad. You're on your own for suing the penniless cretin to recover costs.

If you do have comprehensive then your insurance pays (deductible applies). The insurance company will eventually go after the other guy, and if the loser ever disgorges any money they have to return your deductible before hanging on to their chunk of change.

This is in Colorado. What state has uninsured motorist coverage applying to property, BTW?

I'm in CA there are two typed of uninsured motorist coverage here. UMBI (which stands for uninsured motorist bodily injury) and there is UMPD (uninsured motorist property damage).

The general public does not know difference between the two and if they have one they usually think they have both, in waffleironhead case in here he got a rude surprise in a accident situation.

UMPD is available in your state, although it is optional.

Here is a list from this article that can be helpfull.

Alaska: insured may reject in writing
Arkansas: insured may reject in writing, $200 deductible
California: insured may reject in writing
Colorado: coverage optional
Delaware: accepting UM coverage includes UMPD
District of Columbia: UMPD required
Georgia: UMPD required
Hawaii: UMPD required
Illinois: insured may reject coverage
Indiana: insured may reject in writing
Louisiana: UMPD required, $250 deductible
Maryland: UMPD required
Mississippi: insured may reject coverage
New Hampshire: not required
New Jersey: UMPD required
New Mexico: UMPD required
North Carolina: UMPD required
Ohio: coverage available upon request
Oregon: UMPD required
Rhode Island: mandatory unless rejected in writing, optional if insured has collision coverage
South Carolina: UMPD required
Tennessee: insured may reject coverage, $200 deductible
Texas: UMPD required
Utah: UMPD required if no collision coverage
Vermont: UMPD required
Virginia: UMPD required
Washington: UMPD required if no collision coverage
West Virginia: UMPD required
Wyoming: not required
Source: Property Casualty Insurers Association of America, 2008
http://www.insure.com/car-insurance/uninsured-motorist-damage-coverage.html