Author Topic: For those with cars  (Read 6081 times)

Gin1984

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For those with cars
« on: July 19, 2014, 12:13:20 PM »
When would you get rid of collision/comprehensive?

daverobev

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Re: For those with cars
« Reply #1 on: July 19, 2014, 02:51:26 PM »
When you can afford to replace the car (or wouldn't replace it).

MillenialMustache

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Re: For those with cars
« Reply #2 on: July 19, 2014, 03:09:28 PM »
When the car is worth less than $10,000, as long as you have enough in savings to buy another one.

RootofGood

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Re: For those with cars
« Reply #3 on: July 19, 2014, 03:29:56 PM »
I don't think I would get comprehensive or collision on a new car.  I can afford a $10k-20k hit to NW in the event of a total loss.  I drive so little that I would be overpaying for the risk of collision, and I can take steps to mitigate risks covered by comprehensive (park in my driveway with a motion activated light, lock doors all the time, don't leave valuables visible, etc). 


alsoknownasDean

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Re: For those with cars
« Reply #4 on: July 19, 2014, 06:44:18 PM »
I'd get third party insurance on any car I was driving on the road, but wouldn't bother with comprehensive unless it was worth over $5000.

BlueMR2

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Re: For those with cars
« Reply #5 on: July 20, 2014, 05:25:40 AM »
I dropped collision on my cars when the value was under $8000.  I kept comprehensive though, because it's so incredibly cheap  (a few $ a year).  Plus there's some irrational emotional stuff there.  If I crash my car into something and wreck it, I'm OK with that.  However, having a tree fall on my car and I get nothing would hurt.  :-)

Keeping collision on my wife's car (even though it's well under that amount) for when we borrow/rent cars.  If we don't have collision on our policy somewhere, we're not covered driving other people's cars or rentals.

jabber

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Re: For those with cars
« Reply #6 on: July 20, 2014, 03:19:50 PM »
We kept C/C until our 2nd car was totaled and we collected the payment.

Now we only have one car, which we will keep C/C indefinitely.  Seems like it would depend, though, on your driving volume, monetary benefit from driving, and how good your alternatives are.

RyanAtTanagra

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Re: For those with cars
« Reply #7 on: July 21, 2014, 11:15:06 AM »
The way I think about it is that insurance always favors the insurance company (or they wouldn't do it).  So statistically you should only insure things you either have to (full coverage on a car with a lien), or things you can't afford to replace (your home, your health in an expensive-case scenario).  I dropped collision from my plan when the car was paid off and I could afford to buy a new one if I totaled it.  I don't have a car anymore but I carry comprehensive (no collision) on my motorcycle only because I park it on the street in a high traffic area (car and pedestrian) and worry about vandalism or a bad parallel parker.

And like BlueMR2 said, sometimes there's an emotional piece of mind benefit.  If you'll sleep/drive more soundly having it, and it's not derailing your financial plans, it can still be worth it.  If you drive a mustachian car to begin with, they're really not that expensive to insure in most areas.

Cassie

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Re: For those with cars
« Reply #8 on: July 21, 2014, 12:28:37 PM »
I drop it only when the value of the car reaches 2,000.

Gin1984

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Re: For those with cars
« Reply #9 on: July 21, 2014, 12:37:53 PM »
The way I think about it is that insurance always favors the insurance company (or they wouldn't do it).  So statistically you should only insure things you either have to (full coverage on a car with a lien), or things you can't afford to replace (your home, your health in an expensive-case scenario).  I dropped collision from my plan when the car was paid off and I could afford to buy a new one if I totaled it.  I don't have a car anymore but I carry comprehensive (no collision) on my motorcycle only because I park it on the street in a high traffic area (car and pedestrian) and worry about vandalism or a bad parallel parker.

And like BlueMR2 said, sometimes there's an emotional piece of mind benefit.  If you'll sleep/drive more soundly having it, and it's not derailing your financial plans, it can still be worth it.  If you drive a mustachian car to begin with, they're really not that expensive to insure in most areas.
Yes! the truck we are getting is worth $6000 and the car we have is worth about $7500, but the biggest issue is that I got them from family who takes care of their cars so finding similar cars would be difficult.

Meggslynn

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Re: For those with cars
« Reply #10 on: July 21, 2014, 12:41:57 PM »
Wow, I didn't even think of this (duh!).

Unfortunately do to working in a isolated industrial park we both drive and both of our cars would pay out less than $10K if we wrote them off and we can afford to replace them both outright.
Calling the insurance company ......

usmarine1975

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Re: For those with cars
« Reply #11 on: July 21, 2014, 12:45:39 PM »
It's a personal decision to a degree.  I usually get quotes for both Comp and Collision and figure what the pay back would be.  We lost 2 cars beginning of the year.  First was rear ended by a "Stolen" rental car and the second we lost due to ice on a roadway. 

The first in which we were rear ended we did not have collision and for us it was a total loss.  Because the Rental Car was claimed to be stolen we got nothing from the Rental Car agency & nothing from the person who rented the car.  (note boyfriend of the daughter is the supposed thief) He left the scene parked the car locked it and walked off.  Now resides in another state for this or that reason.  The case is still open but most likely will get us nothing.  We did get $250.00 at the local junk yard.

The 2nd vehicle we carried Collision on because it was a newer and more expensive car and the cost was worth it especially since it ended up also being a total loss.

We purchased 2 used vehicles and now carry Comp only.  My reasoning is the comp is cheap and we live in the City.  We put the savings from collision into our emergency brokerage account.

Another thought is to adjust your deductibles up or down and see what makes sense.  A good agent will help you through this process and even analyze it for you.

Seņora Savings

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Re: For those with cars
« Reply #12 on: July 21, 2014, 12:47:39 PM »
Yes! the truck we are getting is worth $6000 and the car we have is worth about $7500, but the biggest issue is that I got them from family who takes care of their cars so finding similar cars would be difficult.

Insurance won't help with that, it'll just give you a stack of cash.  If your net worth > cost to replace car, I'd drop.  Unless you know something about your unfitness to drive that the insurance company doesn't.

solon

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Re: For those with cars
« Reply #13 on: July 21, 2014, 12:50:10 PM »
I think it's hysterical that there can be a thread called "For those with cars", and nobody thinks it's odd! On what other forum would there be a sizable chunk of readers who don't own a car? Only in mustache land!

Timmmy

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Re: For those with cars
« Reply #14 on: July 21, 2014, 03:22:19 PM »
I can buy the extra coverage for a few hundred dollars a year so I do.

Car A value ~$3000
C&C = $97/yr
Deduct = $500

Car B value ~$6000
C&C = $107/yr
Deduct =$500

Obviously as the value of the cars go down it's not nearly as good of a deal.  As it stands, I'd have to go a really long time claim free to make the numbers favor dropping it. 

We also drive a facepunch worthy amount so the chance of accident is higher than a lot of you based on miles driven.

hexdexorex

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Re: For those with cars
« Reply #15 on: July 21, 2014, 04:15:19 PM »
If its older than 10 years old I would get rid of it. Thats one reason I love buying cars older than 10 years :)

Thegoblinchief

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Re: For those with cars
« Reply #16 on: July 21, 2014, 08:55:37 PM »
I dropped collision this past year, should have done it long ago considering the combined value of our cars is about $2500.

ketchup

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Re: For those with cars
« Reply #17 on: July 22, 2014, 07:15:55 AM »
I've never had either, but I've also never spent more than a month's gross salary on a car.

fallstoclimb

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Re: For those with cars
« Reply #18 on: July 22, 2014, 07:53:48 AM »
I just recently dropped both on my car.  It only saved us roughly $300 a year because my car is very cheap to insure, but we are at the point where we don't need two cars, so I'm willing to take the gamble.  It'd be a bummer if it were totaled and we got nothing, since it is worth $5,000, but we don't NEED that money or the car so I'm willing to take that (low) risk.