Author Topic: Finally dropped comp and collision coverage  (Read 5404 times)

toodleoo

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Finally dropped comp and collision coverage
« on: January 24, 2015, 12:11:48 PM »
I should have done it a while ago as my car just passed the 11 year mark. I will be getting a $71 refund check which will promptly be used to buy more shares in my investment account! Feels great!

netskyblue

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Re: Finally dropped comp and collision coverage
« Reply #1 on: January 24, 2015, 12:56:26 PM »
I did this last Tuesday!  Car's only 4 years old, though...  Been paid off for a year and a half.  (Shouldn't have bought new, but I do love it and I'll keep it till it stops going).

TheThirstyStag

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Re: Finally dropped comp and collision coverage
« Reply #2 on: January 25, 2015, 09:03:50 AM »
Awesome choice.  Congrats.

I did the same, but am putting the saved money aside in a separate account to "self insure" anything that I would have needed to claim via comp/collision.  Once I hit the car's value (less deductible), it's extra monthly savings in my pocket.

NinetyFour

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Re: Finally dropped comp and collision coverage
« Reply #3 on: January 25, 2015, 09:09:16 AM »
I did the same a couple of weeks ago.  My car is 14 years old--and has been paid for for many years.  The changes I made to the auto insurance will save me over $410 per year.

bzzzt

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Re: Finally dropped comp and collision coverage
« Reply #4 on: January 28, 2015, 07:04:05 PM »
Finally remembered to call my agent during business hours. This will save us ~$500/year on two 11 year old vehicles.

choppingwood

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Re: Finally dropped comp and collision coverage
« Reply #5 on: January 30, 2015, 01:46:16 PM »
I was looking for ways to save money on insurance, and the insurance company suggested this because my car was past the 10 year mark! I was really shocked, and didn't do anything about it until the following year.


 

Retired To Win

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Re: Finally dropped comp and collision coverage
« Reply #6 on: January 31, 2015, 06:24:38 AM »
I did the same a couple of weeks ago.  My car is 14 years old--and has been paid for for many years.  The changes I made to the auto insurance will save me over $410 per year.


Our vehicles are 17 and 19 years old (and working great, by the way).  But when I analyzed the savings from dropping collision coverage on them against the potential cost of having to pay for the replacement of one of them if "totaled" in an accident, we opted to retain the collision coverage.  Particularly since, a little further back, one of our vehicles WAS totaled and it was great to have the insurance company send us a fat check which we used to buy a replacement (same car, same year!).

This, however, is an analysis I did 3 years ago, when the cars still were each valued around $5000, and it would have taken 10 years of insurance premium savings to break even on another collision disaster.  So, time to do the analysis again.

(Thanks, OP, for putting the thought in my head!)

Yankuba

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Re: Finally dropped comp and collision coverage
« Reply #7 on: January 31, 2015, 01:09:25 PM »
Hello,

I own my car and it is worth approximately $6500. I pay $265 per year for collision and comprehensive (with a $1000 deductible). Am I being un-Mustachian by keeping collision and comprehensive? The car is 9 years old.

Thanks,
Yanks

AlexK

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Re: Finally dropped comp and collision coverage
« Reply #8 on: January 31, 2015, 01:23:33 PM »
I never had comp and collision but I just upped my liability to 250k (up from only $15k state minimum) and the premium for one car only went up from $88/6mo to $113/6mo (I also bought a $1M umbrella policy at the same time for $187/yr). We are starting to have significant assets and I don't like the idea of all that money on the line if one of us screws up behind the wheel. The umbrella policy adds coverage to house and rental property policies as well.

Exflyboy

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Re: Finally dropped comp and collision coverage
« Reply #9 on: January 31, 2015, 01:56:53 PM »
Our cars are now 3 years and 16 years old.. Only carry liability on both of them.

I can do bodywork and paint so it seemed a reasonable risk.. we are FI so if we had to drop $12k on a 2 year old ex rental car it wouldn't be the end of the world.

We also carry $0.5M combined single limit liability.

Frank

Longwaytogo

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Re: Finally dropped comp and collision coverage
« Reply #10 on: January 31, 2015, 02:09:03 PM »
Good job!

 I did the same last Summer. Also upped my deductible for Homeowners Insurance (I'm in construction so self-insure small damage/repairs anyway)

Between the two saved around $65 a month!

Money Badger

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Re: Finally dropped comp and collision coverage
« Reply #11 on: February 01, 2015, 06:21:05 PM »
My insurer has a good "what if" premium calculator...  Dropped my no fault limits (state required) and removed several rental car/towing options.    Kept the major liability and umbrella limits intact.   Savings for 3 cars all currently sub-20k value was almost $800 per year.   That'll do.

jmusic

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Re: Finally dropped comp and collision coverage
« Reply #12 on: February 02, 2015, 12:22:23 PM »
My Honda is worth ~$7500 and dropping collision/comp with $1k deductible would save me $250 per year.  I'll probably keep collision/comp for another two years or so, until my car drops below $4500 or so.