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At what point do you not choose collision and comprehensive in auto insurance?

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At what point do you not choose collision and comprehensive in auto insurance?

Old 06-03-20, 12:07 PM
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EJ123
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At what point do you not choose collision and comprehensive in auto insurance?

My car is over 15 yrs old with 110,000+ miles, probably worth ~$1,000 and trade-in about $500-800. Is there even a point to choose a $250 or $500 deductible for both collision and comprehensive? There is already lots of minor body damage already. The only thing I can think of is I want to keep it for a few more years since the engine runs great and the car is super reliable. I could save $120 a year by not choosing these options. The flip-side is where I will be living will be icy, so in theory it's possible I could slide into other objects when driving to work, making collision more appealing.
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Old 06-03-20, 12:44 PM
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When this happens
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Old 06-03-20, 12:50 PM
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When the deductible costs more than the value of the vehicle...

If you can replace your car for about $1000, you have met that goal. Now bear in mind that we are talking about something of equal worth... not something bright and shiny.

Frankly, I drop the comp and collision when the vehicle warranty expires. Save the difference and you will be able to buy "transportation" if anything should happen to it. I do however maintain liability, medical and uninsured motorist. And at higher than state minimum coverage.

At 15 years of age, you likely should have stopped paying for comp and collision about 8 years ago.... $120 a year saved.... That's about what your vehicle is worth today.
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Old 06-03-20, 02:11 PM
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On a more serious note I dropped full coverage on my 1995 F-150 then a few days later I hit an axis deer and did a lot of damage. This was a few years back and at the time the truck was worth about 6K and it was crunched. Trying to save a few bucks and I got burned. At 1K value I would get the minimum possible. So I had no ride for awhile. Only if I kept full coverage.
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Old 06-03-20, 02:18 PM
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Bought my last 2 cars for cash; never did have c&c.
Prior to that, dropped it with final loan pmt.
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Old 06-03-20, 03:10 PM
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Originally Posted by DiabloScott View Post
Bought my last 2 cars for cash; never did have c&c.
Prior to that, dropped it with final loan pmt.
Seems kind of silly now to have it for my car.
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Old 06-03-20, 03:25 PM
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Do you have the cash reserves to replace it with something else if it's totalled?
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Old 06-03-20, 03:52 PM
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Originally Posted by dedhed View Post
Do you have the cash reserves to replace it with something else if it's totalled?
Remember OP said it is worth about $1000... deductible is about $500.
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Old 06-03-20, 04:41 PM
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Originally Posted by dedhed View Post
Do you have the cash reserves to replace it with something else if it's totalled?
He doesn't need to replace it necessarily, just get something acceptable, or have a back-up.
If it's totaled and it's not his fault, other guy's insurance pays... or uninsured motorist... or other guy might make a non-claim settlement offer.
If it's totaled and it's his fault, he's still going to need to pay to get a replacement... probably long before the insurance comes through with a settlement.
If it's a high-value car then comp and collision would make sense to cover own-fault damage higher than deductible... especially if he's a bad driver, or there's lots of ice, or deer.

Statistically, you're better off carrying the max on liability and minimum on c&c.
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Old 06-03-20, 08:41 PM
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Depends on your insurance, I reckon. Mine does "replace for similar" for a totaled vehicle-- I had a 10 year old Honda with 130k miles on it, got rear-ended on an on-ramp, and insurance paid out $5,300. I had paid $5k for it 3 years earlier.

But then again, this is a Californian perspective-- everything is so expensive here, $120 a year is meaningless. That's like three weeks of electricity.
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Old 06-03-20, 11:58 PM
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The axis deer ran off before it gave me its insurance card. I called axis insurance said they never heard of axis deer. So I was totally F up with a un drivable truck but why care? they didn’t so I didn’t either. fixed it up myself sold it to local HS kid at a great price kid drove it for 3 years said best truck ever lol. Yup I remember the days when a running truck was freedom. Dad said he liked the truck it’s has a 302 v-8 good ford engine. So everything was good....
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Old 06-04-20, 03:09 PM
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I'd at least do a Kelly Blue Book (KBB) quick estimate to see if your car is really only worth $1000.00. Around here, a 15 year old Toyota Corolla in good shape with 140,000 miles goes for $2,900.00 to $3,500.00.

Like Dr. Iso mentioned, I have replacement insurance on the family cars. I've used it twice over the last 5 years for totaled cars that were the driver's fault (me and my stepson). After the deductible, the replacement value paid by the insurance was still higher than what I paid for those cars. Part of that is when a car is totaled, it's really hard to say if the car is in poor shape or excellent shape from a value standpoint, since a totaled car can't be valued in degrees of condition like a running car could for trade in or resale.

If I dropped comp and collision on one of our old Corollas, I would definitely save over $300.00 per year. Which might be worth it if I only had one car in the family to "self insure". The trouble is I have 5 cars to self insure, which is too much for me to do.

Back to the OPs savings of $120.00 per year, that probablywouldn't be worth it to me because if I set that aside for 10 years to go to "self insurance", all I got is $1200.00 for another car. $1200.00 for a car around here would have problems like no AC, worn out suspension, transmission leaks, an engine code present, flood damage, perhaps even a salvage title on the car. If your car doesn't currently have those problems, it's worth at least $2,000.00, IMO.
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Old 06-04-20, 03:13 PM
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The last vehicle that I dropped comp and collision on was a 22 year old Honda motorcycle that I bought for $900.00 and fixed it up to a value of maybe $1500.00. Liability, etc. insurance for that machine was only $51.00 per year. A solid no brainer in that situation, back in 1996.
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