The Money Mustache Community
General Discussion => Welcome and General Discussion => Topic started by: achvfi on February 19, 2019, 08:00:47 PM
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We own two 10 year old cars, together they are worth maximum of about $7000. Is it worth it to keep collision and comprehensive insurance coverage costing us extra $600 per year?
When to drop comprehensive and collision coverage? Do you still carry C & C for your old cheaper cars?
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For two cars that are ~$3500 each, I would probably consider dropping the C&C on them, assuming that I had enough in savings to cover the loss. Depending on what your deductible is you could be paying $1000-2000 anyway should something happen to both of them at the same time.
Personally, I keep C&C on the nicer of my two paid-off cars, but it's only 6 years old (and I've only had it a month). It saved my ass a few months ago when the last one got totaled in a wreck. Insurance paid to replace it with the same car, down to the same color, with an upgraded trim package and lots fewer miles.
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If you can afford to replace the insured object, statistically you're better off self-insuring. For a 10-year-old car, I'd drop to liability. I actually never plan to own a car again that's so new/expensive that I feel the need to insure it. Everything about that increases the TCO drastically.