Full Coverage Insurance.... when to Drop ??

Not sure what would work for you, but I've carried full coverage on my GT since I bought it new in 90. Late this past year some asshole destroyed my passenger door. Glad I had coverage, 'cause it was a difference of me paying $250 versus the full $1500 for a new door, and painting to blend. If it's your 89 you are considering dropping coverage on, take into consideration something I found out during my ordeal. There seems to be a severe shortage of good-condition body parts for the Fox-generation cars. This will make aquiring parts not only harder, but more expensive. Last, I guess your monthly insurance cost is a factor too. For me keeping the full coverage is suitable. I have full coverage on my Mustang and liability only on a 96 Explorer (daily driver) for $109/month.

Randy

We're living in a world that's been pulled over our eyes to blind us from the truth. Where are you, white rabbit?

Good points Randy.

My (6) month premium (for Collision ONLY) on my 89 is only $54. And that's with a $500 Deductible.

I may drop the Deductible all together.....Not sure yet....

-ERIC

I'm carrying liability only on my 95 v6 for $124 a month. No way I could afford anything higher than that ;)...so it's really up to you If you're not spending much more for full coverage by all means stick with it. (especially if you've put a lot of work and or parts into the car) IMHO Jdz

Consider dropping collision/comprehensive when the value of the vehicle drops below the premium multipied by 10. This is the financial 'break-even' point.

Regards,

-JD

--------------------------------- JD's Locally-Famous Mustang Page: http:/207.13.104.8/users/jdadams---------------------------------

Sounds good. The total premium per year, correct ?

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I would say whenever the cost of insurance out weighs the value of the vehicle.

Kate

Correct. I get this advice from a well-known financial guru who's advice I greatly value. After running the numbers, I find it to be pretty decent advice. I'm getting pretty close on my '98 GT now, and come May, I'll have to run those numbers myself.

Regards,

-JD

--------------------------------- JD's Locally-Famous Mustang Page: http:/207.13.104.8/users/jdadams---------------------------------

Statistically, if the yearly premium for comp/collision is more than 10X the value of the car, it is cheaper for you to 'self-insure' yourself by not paying the ins. premiums. (I use high book for the value.)

For example, if you're paying $500/yr. for comp/collision coverage, you should seriously consider dropping it when the value of the car drops below $5000. At this point, the odds of collecting back what you will pay over the next several years is slim at best.

Of course, if you're a drunken dufus who often runs into trees, keep the coverage...if you can get it to begin with. :)

Good to know. I asked my insurance agent and they didn't really give me an answer. Makes sense ofcourse, they're not ging to tell me to pay them LESS money.

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Thanks Randy - thinking it's a good idea to put it back on mine.

-Dave

I dropped my Deductible down to $100. Only increased my Premium $17 over 6 months. :>)

-ERIC

As soon as you've paid off the loan that requires it, then put your savings into a fund that pays interest. Never pay for car insurance if you can avoid it; insurance companies will only loan you the money for damages that you caused, then make up for it with increased premiums. Make your money work for you, not for someone else.