Auto insurance question - when to drop comprehensive coverage?

[Peony]

What are people's thoughts on how long to keep comprehensive coverage on a vehicle, if there is no loan involved (and therefore no lender requirement to maintain such coverage)? Would you drop the comprehensive coverage as soon as you could comfortably replace the vehicle out of savings, essentially self-insuring? The book value of the vehicle in question is about $7,500, so we're not talking enormous sums. Asking because my insurance has just gone up to $1,600 per year thanks to a fender bender involving a deer several months ago and that feels like a lot. I'm not sure how low it would be if I just cut back to liability; will have to inquire with my insurance agent next week.

[gooki]

With those numbers I'd drop comprehensive as soon as one had 1/2 it's value in an emergency fund.

[Peony]

Maybe I should drop the comprehensive and stick the savings in a car-replacement fund. Since the car's eventually gonna need replacing in any case.

[BlueMR2]

Are you sure it's the comprehensive that's the cause and not the collision?  I drop collision when the value drops below $5000, but I keep my comprehensive because it costs a whopping $3 a year and covers all the non-collision loss cases (fire, etc)...

[seattlecyclone]

What fraction of the car's value does the comprehensive insurance cost? 5%? 10%? More? How likely do you think it is that your car will be totaled in a way that the comprehensive insurance covers? If the second number is much less than the first, and you can afford to buy a new car if necessary, I say you should drop the coverage.

[Peony]

Are you sure it's the comprehensive that's the cause and not the collision?  I drop collision when the value drops below $5000, but I keep my comprehensive because it costs a whopping $3 a year and covers all the non-collision loss cases (fire, etc)...

I thought comprehensive *was* collision, pretty much. I guess what I'm asking is, at what point do I just worry about liability and nothing more?

[Hamster]

Liability is a given; comprehensive<collision

Comprehensive means (mostly) everything but collision - hail, fire, theft, windshield cracks/chips, etc depending on your policy.

It's much cheaper than collision. Look at your itemized insurance bill.

If you can afford to cover the replacement cost of your vehicle, then statistically, you'd be better off if you get rid of collision coverage (unless you suspect your odds of getting in an accident are higher than average based on your demographics).
[edit: can't spell, or think]

[DocLago]

I actually posted a similar question to this on the forums as well a few days ago.  I have been thinking about it myself a lot recently.  Next month I will be paying off my 2009 Scion 2 years early.  It was valued for trade-in at 11500 6 months ago.  So in essence I would value it at 10k today, at the least.

Running through some numbers, I pay 85$ a month for full maxed insurance on my car currently.  I really wouldn't expect my insurance to drop more than half if I got rid of the optional coverages.  Lets say 40$ a month.   So $480 a year.   At that rate it would take me 20 years to save up the value of my car in the event it was totaled.  I won't have my car for 20 years, it's a nice thought but not logical.  SO really is it even worth it to drop the coverage?  Maybe my math is wrong. /shrug

[Peony]

That's funny, DocLago, my car is a Scion also (XB), but a 2006. A good car.

I will call the insurance agent at my credit union tomorrow and find out what I would save by dropping all but basic coverage. Obviously, I can't make a good decision without that number.

[unpolloloco]

Use math - take the value of the car minus the deductible and divide that by your yearly collision rate and by your comprehensive rate.

Let's say your car is worth 11k, your deductible is 1k, your collision rate is $500/year, and your comprehensive rate is $200.  That means (simplifying heavily) the insurance company is figuring you'll total a car (your fault) once every 20 years (10k/500) and you'll have a total loss due to other factors (animal, weather, etc.) once every 50 years.  If you think you actually will total a car every 25 years instead of 20, it makes sense to drop the coverage (*if you can easily cover the replacement cost*).

Also, shop around.  You might be able to do much better elsewhere even with the deer strike.