Not Driving much - Cancel full coverage on car insurance and get liability only - Good idea?

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teelainen
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Not Driving much - Cancel full coverage on car insurance and get liability only - Good idea?

Post by teelainen » Sat May 16, 2020 12:31 am

Since we are hardly driving anyways, and the car is always parked inside the garage, wouldn't it be a good idea to just cancel full coverage on car insurance and get liability only?

What do you think?

David Althaus
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Re: Not Driving much - Cancel full coverage on car insurance and get liability only - Good idea?

Post by David Althaus » Sat May 16, 2020 6:15 am

Depends on the point where you're willing to self-insure. Once the value of a car we own drops below $10k we drop the comprehensive. Your value proposition may vary.

All the best

GenawithanE
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Re: Not Driving much - Cancel full coverage on car insurance and get liability only - Good idea?

Post by GenawithanE » Sat May 16, 2020 6:28 am

First, be sure you keep in place whatever insurance your state may require.
Second, the car insurance companies announced a couple months ago they were going to provide substantial credits [like 25%] because they know people are driving less and thus their exposure is lower. Check with your insurance company.
Third, a lot of insurance companies have some version of State Farm's Drive Safe and Save where you have a unit in your car about the size of a car key that tracks how well and how far you are driving, and you get a discount based on that. We did that when we retired and our insurance has gone down massively because we were driving maybe 3500 miles a year on each car. This might be a time to get that.
So maybe call your insurance agent and see what they will do for you. Their recommendation will obviously be not to drop collision or comprehensive, but you will at least get price information about other options that might hit your sweet spot. Maybe it's time to rethink how big your deductible is and possibly save more that way too.
For us, even with ten+ year old cars, we have found the comprehensive to be worth it. My son has had a new windshield and repairs from when a deer ran into him with zero or a few bucks cost, and my husband needed and got a new windshield under it, for no charge.

Helo80
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Re: Not Driving much - Cancel full coverage on car insurance and get liability only - Good idea?

Post by Helo80 » Sat May 16, 2020 9:10 am

Reasons for comprehensive....

1. Theft
2. Random garage item falling and damaging car
3. Collisions into the garage door
4. Acts of God that happen on garage and mess up cars (though, I don't know if homeowners insurance could cover this...)

This is not an exhaustive list, but I doubt you're likely to see any of the above.

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Cubicle
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Re: Not Driving much - Cancel full coverage on car insurance and get liability only - Good idea?

Post by Cubicle » Sat May 16, 2020 10:50 pm

Depends on the current value of your car.

I don't carry comprehensive or collision on any of my vehicles.
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marcopolo
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Re: Not Driving much - Cancel full coverage on car insurance and get liability only - Good idea?

Post by marcopolo » Sat May 16, 2020 10:59 pm

Helo80 wrote:
Sat May 16, 2020 9:10 am
Reasons for comprehensive....

1. Theft
2. Random garage item falling and damaging car
3. Collisions into the garage door
4. Acts of God that happen on garage and mess up cars (though, I don't know if homeowners insurance could cover this...)

This is not an exhaustive list, but I doubt you're likely to see any of the above.
You seem to have a particularly dangerous garage :beer

I believe item 3 would require collision insurance, and not be covered by comprehensive.
Once in a while you get shown the light, in the strangest of places if you look at it right.

Vanguard Fan 1367
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Re: Not Driving much - Cancel full coverage on car insurance and get liability only - Good idea?

Post by Vanguard Fan 1367 » Sun May 17, 2020 12:57 am

I think dropping collision and comprehensive is a good idea. I don’t carry those on my three cars.

My fanciest car is a 2017 Ford Taurus.
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tenkuky
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Re: Not Driving much - Cancel full coverage on car insurance and get liability only - Good idea?

Post by tenkuky » Sun May 17, 2020 6:54 pm

Some insurances will let you "store" the car for a period of minimum 30 days.
That automatically drops the coverages. You can then reactivate or keep extending.
You cannot drive the car at all in that period.
Check if you insurance lets you do this.

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arcticpineapplecorp.
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Re: Not Driving much - Cancel full coverage on car insurance and get liability only - Good idea?

Post by arcticpineapplecorp. » Sun May 17, 2020 6:56 pm

Surveys reveal that the most car accidents happen within five minutes or less of a driver's home. Approximately one-third of all car crashes occur between one and five miles of where the driver lives. The most common type of collision that happens within this radius is drivers hitting parked cars.

source: https://www.google.com/search?client=fi ... se+to+home
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sport
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Re: Not Driving much - Cancel full coverage on car insurance and get liability only - Good idea?

Post by sport » Sun May 17, 2020 7:10 pm

Collision coverage is relatively expensive. However, comprehensive coverage is much less. It might not be worth dropping comprehensive. For my 2013 Camry, $50 deductible comprehensive costs only $14.34 for six months. For a higher deductible, it would be even less. So, not much opportunity to save there.

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climber2020
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Re: Not Driving much - Cancel full coverage on car insurance and get liability only - Good idea?

Post by climber2020 » Sun May 17, 2020 7:10 pm

arcticpineapplecorp. wrote:
Sun May 17, 2020 6:56 pm
Surveys reveal that the most car accidents happen within five minutes or less of a driver's home. Approximately one-third of all car crashes occur between one and five miles of where the driver lives. The most common type of collision that happens within this radius is drivers hitting parked cars.

source: https://www.google.com/search?client=fi ... se+to+home
Each time you take a roundtrip drive somewhere, your car has to pass through that small radius twice (once on the way out, once on the way in) regardless of the destination. Statistically that's where most accidents happen because that's where your car is more likely to be located at any given time.

Unless these surveys somehow controlled for that variable, which I highly doubt.

Starfish
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Re: Not Driving much - Cancel full coverage on car insurance and get liability only - Good idea?

Post by Starfish » Sun May 17, 2020 9:04 pm

Vanguard Fan 1367 wrote:
Sun May 17, 2020 12:57 am
I think dropping collision and comprehensive is a good idea. I don’t carry those on my three cars.

My fanciest car is a 2017 Ford Taurus.
I thought so too, but after some events I am not so sure anymore.
If somebody hits you and they are at fault and you do not gave full coverage then you have to deal with it yourself. I have full coverage but with a 2000$ deductible. Last time I was hit the estimate was almost 2000$. My insurance company did not care, the other insurance company (kind of shady no name) refused paying.
No you have to sue the other party, but maybe a simple case you can bring to small claims court.

Otherwise yes, is not justified to carry collision if you can afford a replacement.

There is also the coverage issue: insurance pays only a small amount of money for an older car.

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