Dropping Collision and Comprehensive on my car

[$200k]

Hi,

My wife owns a 2008 Versa with 120K miles.  It has an apparent book value of $5,750, but probably lower due to some bumper damage.  The bi-annual cost for comprehensive and collision is $186 (or $372 annually), with a $1,000 deductible.  So, if the car was totaled, insurance would pay out no more than $4,750.

She has never totaled a car before (in her 30s).  Her commute is 26 miles RT.  I am thinking of dropping collision and comp.  What do you guys think?  Is this a no-brainer? 

If the car were totaled, and I did not have collision and comp, I would simply pick up another used economy car for around $4,000 that I have in my emergency fund.

[jba302]

Over time, risk transfer always costs more for the transferor compared to retaining the risk. If you can eat the risk and have the appetite for it, it's statistically worth it.

[TrMama]

I have a similar car and insurance premium. I dropped collision and comprehensive this year.

Additionally, since I'm in BC, if the car is damaged in an accident that's not my fault, then the other person's insurance will pay to fix/replace the car. I'm only out the entire cost of the vehicle if I total it AND I'm at fault. Certainly possible, but it further reduces my financial risk.

Also, I saved $80/year since I no longer use it to commute to work :-)

[Cecil]

Additionally, since I'm in BC, if the car is damaged in an accident that's not my fault, then the other person's insurance will pay to fix/replace the car.

Isn't it like that everywhere?

[burly]

It is in the US too.

[Eric]

I personally think it's a good idea, but there are others who disagree in this thread:

https://forum.mrmoneymustache.com/ask-a-mustachian/collision-and-comprehensive-auto-insurance/

[jawisco]

I would drop it unless your wife is a really bad driver.  Self insure is the way to go whenever you can afford it...