Should I get comprehensive insurance on a $3500 car? - GM Forum - Buick, Cadillac, Chev, Olds, GMC & Pontiac chat


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View Poll Results: Comprehensive or no?
Yes, get comprehensive even though the car will be paid off within 2-3 years 5 33.33%
No, Take your chances, save the money from the insurance toward a new car 10 66.67%
Voters: 15. You may not vote on this poll

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Old 05-22-2007, 05:05 AM   #1
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Default Should I get comprehensive insurance on a $3500 car?

With the insurance increase from going from liablity to comprehensive I will have paid off my car in 2 years with the insurance increase alone.

- I have paid off the entire cost of the car and all repairs associated with it.
- I drive 25,000 miles a year.
- In 2 years the car will be worth no more than $2000 since it will have 240,000 miles on it.
- In 2 years I'll have paid $1800 for the extra insurance increase, $900 a year extra.
- I can part the car out for at least $500 no matter what happens to it I think (AL7s are worth $300, etc) Possibly more, an entire series 2 L67 drivetrain is worth a lot regardless of miles.
- Deductable is $500, subtract that from the cost of the car. So I'd be out $500 if I wreck automatically.
- Transmission repair and wheels not factored into the price of the car. With the transmission repair factored in it would be 3 years until I've paid it off with the comprehensive insurance increase.
- Right now with a transmission with 0 miles on it with a 3 year warranty the car is probably worth around $3500 with 180,000 miles
- In 2 years I'll have saved around $2000 from NOT getting comprehensive insurance. So if no accidents occur, I'll have around $4000 in my bank account from the money saved and after I sell the car.
- For example, 2 weekends ago my car was the victim of a hit and run, bumper scratched, tailight smashed, center light smashed, quarter panel bent in 1/4 inch where the light mounts and I'd be out $500 automatically. cost of that accident was probably right around $500, since I fixed the car for around $80, Even If I had comprehensive insurance, I'd be screwed on something like that if it happened again.
- Even though my transmission costed as much as the car (almost) it would not be included insurance wise if I totaled the car.
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Old 05-22-2007, 08:45 AM   #2
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Holy cow that'* a lot! In my case it is hardly worth it dropping it because it'* like $100 a year difference, but $900!! Definitely drop it unless you are a terrible driver.
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Old 05-22-2007, 08:48 AM   #3
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No. I never pay full coverage premiums on a car that'* paid off, has high miles, and is old. Just dumb, IMO.

After one year of premiums, you'll dang near have saved the net worth of the car. After one year, one month, you'll have broken even!

Maybe I missed something - this seems like a no-brainer.
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Old 05-22-2007, 10:36 AM   #4
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yeah I agree with vital and grimm, it'* not worth it in your case and if you were to file a comprehensive claim, your insurance rates would go up too, increasing cost on a car that'* not worth it
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Old 05-22-2007, 10:57 AM   #5
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Not necessarily true. On my 94 SSE I carried comp & coll and when my son drove into a poll and totalled it my company settled with me for $3500 (that is after my deductible). I had enough to either rebuild or put it down on something else.

Your car is an investment and as long as the payout is more than the premium then you should carry it. My company doesn't hold comp claims against you. Comp covers so many perils and yet doesn't cost nearly as much as collision.
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Old 05-22-2007, 11:29 AM   #6
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Hans, mileage will be a huge factor in the value of your car when the insurance company assesses your car after an accident. Take if from one who just went through a total loss. With the exception of the front seat leather, my car was in exceptional condition. The more Bonnevilles I look at to replace this one, the more I realize how nice mine was (and the more depressed I get). The insurance adjuster took the condition into consideration, ignored the seat leather, and flat out told me the 195,000 on the odometer would kill me. There are a few things adjusters can do to help or hurt the value of the car, but unless they lie about the mileage, there'* automatic deductions for high mileage that he has no control over - it'* all loaded onto a computer and software makes the value determination.

My point is that after you breach 200k, the value of your car will take a dump and $700 worth of damage might be enough for the insurance company to total it. Doesn't matter that your engine only has 70k after a complete rebuild, or that the tires have less than 4,000 miles on them, or that there'* not a spot of rust on the car (I'm referring to my car, BTW). What matters at that point is the mileage. If your airbags deploy and you have near 200k on the O-D-meter, your car is totaled - guaranteed. You'll be lucky to get $1,500 - 2,000 out of your car if totaled with 240k on it.

24ME is right, if your car is valued more than what your insurance payout is (add premiums, deductible, etc.), then full coverage is a good option. But there is a point of no return when you pay more for insurance than the car'* worth. You're getting close to that. Now you have to make the call.
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Old 05-22-2007, 01:58 PM   #7
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Not worth it at all. If you pick it up, you're essentially betting money you'll have an accident and get the money.
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Old 05-22-2007, 02:21 PM   #8
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Wow, $900 extra/year for comp?

You must be young, male, unmarried, and perhaps have a not-so-clean driving record?
(Or you have a crappy ins co...)

At that cost versus the value of your car, your insurance company is practically TELLING you not to buy comprehensive.

A general rule of thumb, depending on where you live (urban vs. rural), how much savings you have (can you replace the car out-of-pocket?), and your general driving ability (read, maturity) is to pay no more than 10-15% of the car'* value in a yearly comprehensive premium. Is your car worth $6000+?
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Old 05-22-2007, 02:47 PM   #9
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My 94 had close to 200k miles on it and they only deducted $500 from the settlement. If you have money in the bank and can afford to replace the vehicle if you total this one then go for it. I have a hard time believing you are paying $900 just for comp.

My rates are not as high so the comp only runs me $47 every 6 months for a $250 deductible.
My son pays $87.06 per 6 months for a $500 ded.
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