Author Topic: About to Pay off vehicle  (Read 1303 times)

DocLago

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About to Pay off vehicle
« on: September 14, 2013, 05:27:20 AM »
Alright, so this is something I'm pretty happy about I must say.  I'm about to pay off my 2009 Scion TC.  2 years ahead of schedule.  I bought the vehicle new and it has had virtually no issues asside from 9000$ of hail damage which state farm was nice enough to fix and replace all effected parts of the car.  One thing I learned here is that most insurance companys just fill the dents and paint over, state farm actually replaced the parts.  But I hate having this 9000$ damage hanging over my head.

The question I have is this:  Now that it will be paid off, what should I do with insurance?  I know that I've seen people say that when they pay off the car they cut insurance big time on the car down to state minimums.  8 months ago I took my car to get a trade in value on it and was offered $11,000 from the dealer if I was to buy new from them.  So I'd put the value of my car at 8500 right now easy sale.  Do I want to lose the ability to get paid by my insurance for the value of my car if I drop insurance down so low?  Is there anything else that needs to be done or should be done once a car has been paid off?  This is a first for me, I usually trade every 2-3 years this is the longest I've owned a vehicle.

Rust

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Re: About to Pay off vehicle
« Reply #1 on: September 14, 2013, 06:09:29 AM »
You and I are very different in our approach to cars.

For me once a car is paid off, I'm going to drive the thing until the wheels fall off.  The first car I ever owned I had for 10 years and lost due to an electrical fire.  The second was involved in an accident (not my fault) totaled and I'm on number three right now.  135K miles on it.

Full coverage insurance is something I have never carried.  I have liability only b/c I plan on driving the car until death due us part (mine or the cars).  If the car had gotten dinged and dented from hail damage, well now my car has character.  If I hit a deer and do some body damage that has to get fixed, I go to the junk yard and find the parts I need and swap them out.  (sometimes the color matches sometimes not)

A car for me is just a mode of transportation.  I could care less about the cosmetics of this car.