Auto Ins. Drop Comprehensive and Collision?

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CokeSlurpee711
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Auto Ins. Drop Comprehensive and Collision?

Post by CokeSlurpee711 » Tue Feb 20, 2018 5:00 pm

I'm doing my annual online quote gathering to keep my local non captive agent honest. I feel like I should strongly consider dropping comprehensive & collision or should have about 2-3 years ago.

This is for my 05 Chevy Silverado with ~140K miles on it. I drive about 8 miles one way to work. KBB has a private sale value of $4-6K on it. Basically sits idle on nights & weekends save something where a truck comes in handy.

Geico is quoting me $20 & $40 per 6 months for Comp/Collision respectively so $160 annually for both which exceeds the 10% rule Clark Howard uses https://clark.com/insurance/how-to-shop ... insurance/

I view transportation as just that, so could I take a ~$5K auto loss? Eesh... Yes I'd buy something inexpensive and practical <$10K.

Glaringly obvious to drop both right? Wrong? Thanks to all for any opinions. Love this site.
Last edited by CokeSlurpee711 on Wed Feb 21, 2018 1:43 pm, edited 1 time in total.

bloom2708
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Re: Auto Ins. Drop Comprehensive and Collision?

Post by bloom2708 » Tue Feb 20, 2018 5:16 pm

Any of our vehicles worth $5k to $8k have liability only.

It is a form of self-insuring. Some will say under $5k or under $10k. It also depends on your household situation. We have 2 teen drivers in the mix. They drive liability only cars. My car is an 01 with 133k miles. Liability only.

These are not beaters. 3 Lexus and 1 Audi. We have full coverage on my wife's 04 Lexus. The other 3 are worth between $6 to $8k or so.

Your vehicle seems the right place to go liability only on it. We have 100/300 coverage, but have a $2 million umbrella policy that wraps everything.
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mhc
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Re: Auto Ins. Drop Comprehensive and Collision?

Post by mhc » Tue Feb 20, 2018 5:24 pm

I'm in a similar situation, and I dropped mine last year.

SpaethCo
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Re: Auto Ins. Drop Comprehensive and Collision?

Post by SpaethCo » Tue Feb 20, 2018 6:19 pm

I max out deductibles, I don't drop coverage for 2 reasons:

1) Everything to get the car from the road to its final resting place becomes the insurance company's problem. If I'm in a crash, it's already stressful enough - I don't want to have to worry about making sure the incident tow company gets paid on time, that I track down a place to take the car in a hurry so I can minimize the fees I rack up while it sits in a holding lot, and arranging transportation to get it to that location. If I have collision coverage, I toss the insurance adjuster the title and all of the logistics and paperwork become their problem.

2) If someone hits me, I don't want to mess around being just some guy trying to make a claim against that person's insurance company. Judging from the experiences of those I've talked to, the progress works out far better if it is subrogated through your own insurance company.

jehovasfitness
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Re: Auto Ins. Drop Comprehensive and Collision?

Post by jehovasfitness » Tue Feb 20, 2018 6:49 pm

I daily drive a 01 Cherokee worth about $3500... I keep comprehensive in case I hit a deer since I leave early for work most days.

maybe just drop collision?

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Artful Dodger
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Re: Auto Ins. Drop Comprehensive and Collision?

Post by Artful Dodger » Tue Feb 20, 2018 6:55 pm

In general, I'd agree with the comments to drop coverage. We have a 2003 Mazda MPV, and dropped C&C a few years ago. We used to get a tow reimbursement every now and then and that benefit went away with the C&C coverage, but we now have AAA so have better protection than what we had with the insurance.

Of note, my daughter was driving a 2007 Tucson with 140k miles, and we were thinking of dropping the coverage. I looked at Edmunds and thought $2-2.5K was the best we would do in a sale. We were about to do it, but hadn't made the change yet, and she hit a curb pretty hard which totaled the car. The insurance company valued the car at twice what I had ($5100 - $500 deductible) and wrote us a $4600 check. Oh well. :?

roflwaffle
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Re: Auto Ins. Drop Comprehensive and Collision?

Post by roflwaffle » Tue Feb 20, 2018 7:03 pm

I would shop around before dropping coverage. DW's car is worth maybe $12k-$14k according to KBB (dealer/PP), and we pay $5/month for zero deductible comprehensive and $20/month for collision with a $1000 deductible. My old Honda Insight (maybe worth a few grand) is $3/month for $0 comprehensive and $8/month for collision with a $1000 deductible.

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DanMahowny
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Re: Auto Ins. Drop Comprehensive and Collision?

Post by DanMahowny » Tue Feb 20, 2018 7:12 pm

I have a 2015 Honda Accord- liability only.

Wife drives a 2015 Subaru Forester- liability only.

We've been doing it this way for 25 years.
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dual
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Re: Auto Ins. Drop Comprehensive and Collision?

Post by dual » Tue Feb 20, 2018 7:25 pm

I buy cars new then drive them into the ground. I never carry collision or comprehensive even when the cars are new. Insurance is for events that will make a difference in your life. I can repair or replace a car without it affecting me financially at all. Why hassle with jumping through the insurance company hoops about what can be repaired or where to do it when I can handle it myself.

Good Listener
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Re: Auto Ins. Drop Comprehensive and Collision?

Post by Good Listener » Tue Feb 20, 2018 7:42 pm

I drop collision in these cases. I always keep comprehensive because I want a partner if my car is stolen.

scrabbler1
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Re: Auto Ins. Drop Comprehensive and Collision?

Post by scrabbler1 » Tue Feb 20, 2018 11:05 pm

On my previous car, I eventually dropped Collision but kept Comprehensive for 2 reasons. The first is that Comp is pretty cheap compared to Collision, costing me about $50 per year. Second is that I wanted to have full coverage for glass losses because that type of loss is a high-frequency, low-severity loss which doesn't really vary much by the type of car you have.

bhluckyusaguy
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Re: Auto Ins. Drop Comprehensive and Collision?

Post by bhluckyusaguy » Wed Feb 21, 2018 11:24 am

I just checked with my insurance agent to update some inaccurate info. My DW drives a 2008 Nissan Maxima with 90K miles (i.e. low mileage for a 10 year of car in great shape). The KBB value is $5.5K (private party sale) - I guess a dealer trade-in value would be $4K.

Comprehensive coverage costs $60 per year - we have used this for 2-3 windshield replacements in the past. In fact it currently has a ding so we may need another windshield replaced. Collision coverage costs $180 per year. We plan to purchase a replacement car in the next 12-24 months.

My thinking is if the car is "totaled" (maybe a fender bender these days), the insurance company will pay me the KBB value of $3K-$4K if an accident occurs within my 12-24 month timeframe at a cost of $180 to $360. While we can afford to take the financial hit, it appears to be cheap insurance. Another thread upstream mentioned the insurance company would be responsible to remove the car from the accident scene - a cost and time factor to consider.

I plan to keep the C&C coverage.
Last edited by bhluckyusaguy on Wed Feb 21, 2018 7:47 pm, edited 5 times in total.

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dm200
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Re: Auto Ins. Drop Comprehensive and Collision?

Post by dm200 » Wed Feb 21, 2018 12:22 pm

One benefit to weigh for keeping Collision is that such coverage can help greatly if your vehicle suffers damage from an at fault driver who (or whose insurance company) resists paying the claim. When you collect on collision, your insurance company will go after the other driver and/or insurance company. I suspect insurance companies are much better at this endeavor.

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CokeSlurpee711
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Re: Auto Ins. Drop Comprehensive and Collision?

Post by CokeSlurpee711 » Wed Feb 21, 2018 1:45 pm

Thanks all. Had some bad math in my OP. This was not as slam dunk as I would've thought. I've decided to cancel (even apples to apples GEICO was cheaper that SafeCo who'd I been with. Time to buy that share of BRK.B for the additional discount, if that's still a thing.

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