Author Topic: Choosing car insurance coverage  (Read 314 times)

jpdx

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Choosing car insurance coverage
« on: August 26, 2019, 12:09:47 PM »
We have pay-per-mile insurance (love it) on our car with the max liability coverage to protect our assets. Should we get rid of the collision and comprehensive coverage? That is the question.

Estimated yearly premium based on driving 3500 miles and 1k deductible:
With comprehensive and collision: $571
With comprehensive, no collision: $509
With no collision, no comprehensive: $487

We can absorb the cost of totaling the car thanks to our stache, but the difference in yearly premium is only $84, so it's a difficult decision. The BlueBook value of the car is around 10k.
« Last Edit: August 26, 2019, 03:49:51 PM by jpdx »

solon

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Re: Choosing car insurance coverage
« Reply #1 on: August 26, 2019, 02:59:22 PM »
The general rule is, if you can afford to replace, then you don't need insurance. According to that rule, you should drop comp and collision.

You're correct that $84 a year isn't going to make much difference either way, but I would take the discount and bank the $84, just to stay true to principles.

jpdx

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Re: Choosing car insurance coverage
« Reply #2 on: August 28, 2019, 09:44:19 PM »
Yeah that's exactly what I'm thinking. Rationally and statistically, it seems like the right choice. But it'll suck (a little) if I'm wrong.

solon

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Re: Choosing car insurance coverage
« Reply #3 on: August 29, 2019, 10:40:49 AM »
If you're nervous about it, you could beef up your emergency fund a little.