When do you drop collision [full] insurance coverage? - GM Forum - Buick, Cadillac, Chev, Olds, GMC & Pontiac chat


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Old 07-24-2007, 06:08 PM   #1
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Default When do you drop collision [full] insurance coverage?

Just wondering what other people do. . .
Since I got my car in 1999 I've had full insurance coverage on it.
Recently I ran a Kelly Blue Book value on my car, and it comes out at less than $3500. I just got my recent insurance bill and they now want just over $1000 a year. (I realize rates vary widely throughout the country and also depend on driving record, etc. I have one collision repair on my record.)

It turns out that the bulk of this is collision coverage and that my rate would be more like $400 a year without it, $600 a year if I get comprehensive (covers theft & vandalism).

Doing the math. . .with a $500 deductible. . . Collision coverage doesn't make sense at this point. My car is 10 years old. If my car sustains around $3000 damage, it would be considered totalled. If badly damaged, I'd get a new(er) car. If lightly damaged, I could just pay to repair it.

So I believe it is time to drop collision.
What do you guys do?
-Mark
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Old 07-24-2007, 06:18 PM   #2
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I would drop it for sure and just keep comp. Save whatever you can! I wish I paid $1000 a year for insurance.
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Old 07-24-2007, 06:44 PM   #3
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I'd have just comp at that point. Once you get to true beater status, drop the comp too
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Old 07-24-2007, 07:04 PM   #4
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I usually drop collision when that part of the yearly premium exceeds 10%-15% of the book value of the car minus the deductible. But I'm middle-aged and married, and have backup vehicles.

For a young, unmarried male (which I'm assuming you are, with that insurance rate), whose rates are higher and who might not have a backup car or savings socked away, that number might want to be more like 20%, 25%, or even 33%.

If I'm reading you correctly, you have a $500 deductible and pay $400/year for collision alone. That puts your collision premium at about 13% of book value minus deductible.

Personally, I'd just be considering dropping collision at that point. But, I'm not you...do you have another car to drive (or spouse or live-in with a car)? Do you have the resources to just go out and buy (and insure) another, newer car? Does your work situation allow you to be without transportation for awhile (or carpool, or do you live somewhere with decent public transportation)?
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Old 07-24-2007, 07:47 PM   #5
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Quote:
Originally Posted by agrazela
But I'm middle-aged and married, and have backup vehicles.

For a young, unmarried male (which I'm assuming you are, with that insurance rate), whose rates are higher and who might not have a backup car or savings socked away, that number might want to be more like 20%, 25%, or even 33%.

If I'm reading you correctly, you have a $500 deductible and pay $400/year for collision alone.
Nope, I'm 40 & married. We also have the wife'* `01 GP, and I have plenty of savings. Actually, I have a $500 deductible and around $600 of my insurance is for collision alone. The $400 would be for liability. I had ultra-low rates until I backed/turned into a concrete pillar at my previous employer'* parking garage, then it went up after I had insurance repair it.

So yes at this point, it looks like we're all in agreement: Dump the collision.

I loved the "beater" comment, and agree with it completely 100%!
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Old 07-24-2007, 08:27 PM   #6
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Quote:
Originally Posted by Bugsi
I loved the "beater" comment, and agree with it completely 100%!


It would be senseless to have even comp on a car like mine (value quite a bit below $1000). The insurance company would just giggle and give me a lollipop.
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Old 07-25-2007, 09:31 AM   #7
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Oddly enough since having the house ... I'm on full coverage and while it means nothing ... I keep it that way.
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Old 07-25-2007, 10:59 AM   #8
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I just have Comp and liability on the 93 SSEi when being driven, comp when parked. Integra has Collision cause of the loan on it. Which puts me at about $1600/yr, but I turn 25 next year. Not married either.
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Old 07-26-2007, 01:54 PM   #9
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I'd totally dump the collision coverage. That'* around $500 a year that you can be adding to the "Next car fund", rather than the insurance company'* "profit sharing fund".

That said, I'd probably keep the comprehensive until it dropped below $1500 in value, at least. Depending on your luck with deer and gravel trucks in your area.
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Old 07-26-2007, 03:44 PM   #10
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Yeah I'd definately get rid of the collision.

FWIW, my rates alwasy just barely go up when going from liability to comprehensive. (I think it was $8 more a month ) That is why I have comprehensive on my '99 GP. I mean the car has 230k miles on it and is far from being in mint condition, blue book is probably less than $2k on it (although I haven't looked it up), but to me its still a nice car and i have a lot invested into it. If I hit a deer with it (very likely with the shitty *** headlights that car has) or get hit in a parking lot or the car gets stolen or something, I'd like to see something out of it. But my insurance is cheap as hell.....I think its $28/mo on my '99 GP...

However, its not worth it to me to have the collision, my rates more than double, and **** with a $500 deductible thats 1/4 the value of the car all on its own.

LOL and FWIW i just did a check and kbb says my car is worth $3,650 in good condition private party....lol. I wish...
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