Insurance Question: collision coverage

How much are you paying now vs. the liability only coverage? A 96 GT vert should be worth something if it is in good shape. Its a gamble. You could save lots in the long run without the coverage or you could wreck it tomorrow. John

I pay about $120 per month ($40 liability + $80 collision)

It's valued around $7500. I would drop collision in a second if the car was a beater, but it's in great condition. But, I want to use the insurance savings and the no-payment extra cash for some pricey things i need to do to the car. (tires, struts/shocks and clutch)

I'm confident about my driving skills, so in the event of a not-at-fault accident, I hope the other person has insurance or I'm screwed. Would uninsured motorist coverage any damage?

I THINK (not sure) if the value of the car is less than 10 times your yearly payment you should drop it. so in your case 10 times 1200 is 12K.. car is worth 7.5K... drop it. Then again, if you really need your transportation and can't; be out

un>I pay about $120 per month ($40 liability + $80 collision)

Remove NO-SPAM from email address when replying

It's a form of gambling. You're betting you'll have an accident. The insurance company is betting you won't. I would say that if you're a good driver, and don't do anything stupid, drop the collision. But, you may also have to drop uninsured motoris coverage - I wouldn't recommend that. There are plenty of morons roaming around out there. If some dirtbag without assests, income, or insurance, wrecks your car (or you) you need to be covered. And we know there are plenty of them, too.

Paul (someone had to say it)

My insurance agent threw the number at me for a vehicle value of $3000 then drop collision. I have a 2000 Exp Sport and the value is much higher than $3000. I am thinking of keeping the collision for one more year, then see where I am at.

"CasinoMaker" wrote

| I'm confident about my driving skills, so in the event of a not-at-fault | accident, I hope the other person has insurance or I'm screwed.

It's not your own driving you need to worry about, it's the other guy. The guy that is talking on his cell phone that makes a lane change into the side of your car. The soccer mom that is looking in her rear view mirror to yell at the kids instead of watching you stop at the light in front of her. ... you get my drift.

To save money you might try increasing your deductible. If you carry a $250 - up it to $500. That will make a difference in your premiums. Another thing you could do is shop around for insurance. These days rates are supposedly dropping.

I would not drop full coverage until the car is only worth a thousand or two dollars. If it gets hit, you are without and you won't get any of your investment back. Kind of like not carrying fire insurance on your home.

Kate

| > > Right now I could use some help with the pros and cons of cancelling | this | > > coverage. The car is still in excellent shape thanks to being in | SoCal. | > > 91k miles on the clock. | > >

| > > I recall a basic formula between cost of the coverage and the value of | the | > > vehicle to determine the right policy. | > >

| > > Thanks | > >

| > > Marc | > >

| > >

| >

| >

| |

Its just a matter of are you willing to take the risk? My first mustang I had was an '88 GT, total beater. Only had liability, van pulled out in front of me when I was doin 55 MPH, boom. Nothin I could do. Guy didnt have any insurance. Total loss. Had the car for 2 weeks. Then my lawyer told me that 8 out of 10 drivers here in South Florida dont have insurance. Yikes.

-Franklin '96 Cobra

That brings another point to mind Bob. If he is involved in an accident and hurt or he has a passenger and they get hurt he is screwed. Though he may have medical coverage through whatever source, a passenger would not be covered. That is of course presuming that he carries medical coverage on his auto policy anyway.

Kate

you forgot.. "Punk"

he he he.. just had to. The line isn't the same without it.

me

When the cost per year X 10 exceeds the low bluebook value of the car, it is cheaper to drop the comprehensive coverage and self-insure.

Thanks to everyone for their replies and helpful opinions. I'm thinking the risk factor is too high, but I'm going to speak with my agent today and get some recommendations.

Thanks

Marc

seriously, how many people have the self control to do that?

"Oh hey, I have an extra thousand bucks in the bank.. think I'll get those gears and the subs."

Not me anyway.

Kate

By not paying someone else to assume the risk of loss beyond this breakeven point, you put that money in your pocket for other, more useful things like mods.

I actually once knew a guy who carried fire and theft insurance on a 7 acre plot of land.

-JD

If you're thinking about droping the entire coverage, go more than $500 deductible. I've never had a chargeable accident and keep my deductible at $1000 (thinking of increasing it). Keep the comprehensive. It's cheap and it covers theft, storm damage, windshields, etc.

LJH

Well now, THAT is a little weird. Sounds like his insurance agent was the only one making money on THAT deal.

Only, on second thought.. if he had harvestible timber or a crop maybe even christmas trees on the property, it would be something to consider.