Optimizing Auto Insurance Policy Rates + What to Eliminate

[FreelanceToFreedom]

I'm up for renewal on my car insurance policy, and thinking about dropping some coverage to save some money. I don't know too much about insurance so I figured I'd ask here. I'm probably going to stick with State Farm as their rates seem in line with others, but I'm thinking of dropping some of the optional coverage.

I have full coverage with comprehensive and collision, because I did have an auto loan on the vehicle - but its now paid off.

Car: 2010 Subaru Outback, 100k miles
Value: KBB says $10k, on Craigslist probably more like $11-12k in my area
Me: mid-20s, male, safe driver, no accidents or tickets, good credit


Current coverage and premium (6-month)

Liability - bodily injury 25k/50k and property damage 25k --- $250
Personal Injury Protection - medical 10k and income loss $800/mo for 1 yr --- $43
Comprehensive --- $82
Collision - $500 deductible --- $190
Underinsured motor vehicle --- $30

Total cost ~$600/6 mo, or $100/mo


So it seems to me like collision and comprehensive are the two that might make sense to eliminate. What are the pros and cons of eliminating those coverage policies?

Also, it seems like my liability limits are actually pretty low - should I increase those?

Any feedback or advice is greatly appreciated!

[Counting_Down]

Some of the logic behind insurance coverage was just discussed on another post.  You might find something useful in it: https://forum.mrmoneymustache.com/ask-a-mustachian/do-i-need-collision-coverage/

[therethere]

Your liability seems low. I've always had 100k/300k. Most new cars cost more than 25k. Hit an expensive car and you're paying out of pocket.

Comprehensive would cover car theft or environmental damage. Do you get damaging hail or park on the street in a city? At minimum, push your deductible up as high as you can afford if you needed to use it ($2,000). Consider your risks and make a decision. Same with collision. If you are at fault you have to pay the deductible to get your car fixed. Can you afford to buy a replacement car without the insurance money if your car got totaled?

Then just to make it counterintuitive, I've found there are exceptions you can only find if you play around with the online quotes. I've seen my car insurance stay the same or go down by choosing higher liability limits. The logic is that you must be a more responsible person to not be accepting the bare minimum. My rate is actually lower on one car by having comp/collision versus not having it covered. But on the second car, it's cheaper not to cover it. Still not making sense of that one....

[CalBal]

I read somewhere (probably on the forums) that if there isn't much difference in price, even if your car is relatively low value it actually is better to keep comprehensive and collision, the reason being, if you are in an accident that is NOT your fault, the only motivation for your insurance company to get reimbursed from the other guy (if they won't admit/accept liability) is if THEY are out the money. If you have no comprehensive and collision, it's no skin off their nose, and YOU will be one trying to get reimbursed from the other person's insurance (and good luck with that, you'll probably have to sue to try to get it). It makes a lot of sense, really. I was rear ended getting on the interstate last year, and it took forever for the other insurance to pay my insurance company (they tried to say it wasn't his fault when it was CLEARLY his fault). If I didn't have it, I would have been out not only the deductible, but also the entire repair bill, most likely.

I just re-upped my insurance - I raised all my coverages but put my deductibles to the max ($2500). The difference between this and no comp/collision was literally like $11/6 months or something like that. I am willing to pay $2/mo for the knowledge that my insurance company will fight for me if I am ever hit again.