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Should I drop my auto insurance full coverage?

Posted: Fri Feb 14, 2020 2:19 pm
by BogleMelon
Does it worth to have full coverage on my vehicles? Here are the details:
Car 1
2016 Mazda 3 (Value $8K to $10K, not sure exactly as it was involved in an accident before). Comprehensive ded: $250, I pay$27.4/yr. Collision ded: $1000, I pay $149.80/yr

Car 2
2009 Hyundai Sonata (Value $3500). Comprehensive ded: $250, I pay$22.4/yr. Collision ded: $1000, I pay $93/yr

Others factors to consider:
- I would need at least comprehensive coverage to get access to roadside service insurance which is pretty cheap comparing to AAA ($10 for car 1 and $15 for car 2 annually)
- It would give me a little bit of stress dealing with another driver on my own if he is on fault when I don't have full coverage (i.e: I add value to the subrogation department in my insurance company).

Currently 41 years old, married no kids, renting, net worth around $220K. Salary $136K, and saving 30%-40% going forward.

** I have posted about this before, but numbers have changed, and I would appreciate Bogleheads opinions.

Re: Should I drop my auto insurance full coverage?

Posted: Fri Feb 14, 2020 2:29 pm
by jpelder
The number I've heard is that it's worth cancelling when the annual premium is more than 10% of the "total payout" (value minus deductible). https://www.insurance.com/auto-insuranc ... rance.html

My cars are worth $10k and $5k. Collision and comprehensive coverage for each is less than 4% of their value per year, so I'm still keeping them.

Looking at your numbers, it seems that it's absolutely worth keeping it on the Mazda and most likely worth keeping on the Hyundai. The peace of mind of dealing with my own insurer in the event of a wreck with another driver at-fault is worth something, too.

Re: Should I drop my auto insurance full coverage?

Posted: Fri Feb 14, 2020 2:32 pm
by Jack FFR1846
In my state, there's zero deductible for glass with comp. I keep that on our 09 Fusion only for glass coverage.