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slyphoxj
join:2002-06-23
united state

slyphoxj

Member

Worth it to drop collision on a $4000 car?

I decided to go ahead and pay my State Farm car insurance bill tonight a couple weeks early or so. I could drop the collision component to save about $148 a year. I've got a 2005 Honda Accord LX with about 182k on the clock. KBB and Edmunds say that my Accord is worth about $3700 - $4300. I'd say that its overall condition falls somewhere between Average and Clean, maybe closer to Average.

After a $500 deductible, that would be around $3500 or so of coverage max. Increasing the deductible to $1000 would save only about $10-$20 every 6 months.

Just wondering... do you feel it would it be worth it to drop the collision now, or wait a year until the value sinks to below $3000?

I'm just debating if $148/year is too much for about $3500 of coverage.

EDIT: Even though I paid the 6 month premium already, I can go on the State Farm website and drop the collision and get a refund for the premium difference (not sure if they'd mail a check or credit it back to my credit card).
b_p_smith
Premium Member
join:2002-02-13
Merrickville, ON

b_p_smith

Premium Member

A lot may depend on whether & how emergency services in your area/state deal with billing.
In Ontario (and likely elsewhere) municipal fire departments will bill for services when they respond to a collision. That can be thousands of dollars (paramedics & police do *not* bill, this is a Fire thing). There's also towing costs to be considered.

If you have collision coverage, that'll cover this bill. If you don't, you'll be on the hook for that bill. There have been a number of news articles on this lately where people driving beaters without collision insurance have been stung by huge bills.

General recommendation now is to always have some minimal collision coverage, even with a high deductible to keep the rates down. But different states & provinces all have widely varying policies, so you may want to look into it. It's not just the value of the car that's in play.

Brad.
OldCableGuy (banned)
join:2014-12-19

1 edit

OldCableGuy (banned) to slyphoxj

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I do not maintain anything but liability insurance on vehicles that I can afford to replace. I maintain 100k/300k/100k for my liability insurance on all vehicles. On vehicles that I can't afford to replace (my daily driver / wife daily driver each valued over 15k but paid off) I maintain comp and collision with deductible at 1000. I do this because most people simply don't use their $500 deductible insurance for a $600-$900 claim even though they could -- because of the small check and the increased rates. So, why not bump up the deductible then? I store nothing in my car (carry it inside each night) so if I need to use my insurance it will probably be quite more than $1000.

Only thing I add is that I add progressive $0 deductible glass breakage. Adds $3 per car per 6/months, but well worth it. Covers windshield replacement from cracks or chips. We both drive 65 miles round trip each day, so rocks happen. No increased rates for using the glass coverage either.

The wife and I insure our 3 vehicles (2 daily drivers and 1 truck with liability only) for just around $500/6 months with Progressive.

CylonRed
MVM
join:2000-07-06
Bloom County

CylonRed to slyphoxj

MVM

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Personally - I would drop it and have done it before with my cars.
applerule
Premium Member
join:2012-12-23
Northeast TN
(Software) pfSense
ARRIS SB6183
Asus RT-N66

applerule to slyphoxj

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Here's the way I look at it:

If you total your car tomorrow (at fault), can you afford to replace your car? If yes, then do you have a second car if you are in any fault accident? If yes, then you are probably okay without it in my opinion.

The reason why I state you need a second car to cover you even if you are not at fault is I once got t-boned by an uninsured motorist. I had no rental coverage.

IowaCowboy
Lost in the Supermarket
Premium Member
join:2010-10-16
Springfield, MA

IowaCowboy to slyphoxj

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It depends on the state where you live. I just switched insurers and dropped collision and comprehensive on my 2001 Dodge Stratus. Only downside is now I don't have coverage that follows me to other vehicles such as rental cars or the Home Depot truck. If you crash the Home Depot truck or a rental car you're on the hook but the collision/comp follows you to another vehicle. And it's a lot cheaper than buying the overpriced coverage at the rental car counter.

In Massachusetts you can very well end up paying more than the car is worth in premiums.

nightdesigns
Gone missing, back soon
Premium Member
join:2002-05-31
AZ

nightdesigns to slyphoxj

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I'm surprised the value is that low. My wife had a 2006 civic with 140k that was involved in an accident last year with an uninsured driver. Insurance paid out about $8k. Made for a nice down-payment on a 2014 replacement.

If totaled today, can you front the loss of $$ for a replacement?

Irun Man
Premium Member
join:2002-10-18
Millsboro, DE

Irun Man to slyphoxj

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I would wait until the value drops to $2500 before dropping collision or comp. The rate of $148 a year seems reasonable.