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Find out what its value is by looking at KBB. In reality you probably think the car is in better condition than it really is. Your not trying to sell it and get someone to look at it so go down a level on condition. Thats what the insurance company would probably do.
Now imagine rear ending somebody lightly, doing a small bit of damage that doesn't affect anything structurally ( plastic bumper cover, grill, headlight assembly, fender, hood buckling). It doesn't take long to add up when it comes to body work and dent repair. On an older car, parts like headlight assembly and grill can be gotten from a bone yard. But dent repair and paint work doesn't matter in price if an older car or a brand new one. It's still labor. It doesn't take long to add up in repair work so a collision like that. That could be a few grand so an older car would possibly get totaled.
I had a Dodge Ram that had a dent in the door about 1 1/2 ft around or so and the pricing 8 years ago when I fixed it was 800 to 1200 then, depending where then. Just for a dent!
20 years ago somebody rear ended my 90 Wrangler. Dent in gate (still worked) 1 dented bumperette ( those little loops of steel on the rear ends of the bumper). And a ding on the aluminum wheel of the gate mounted spare. 2200 in damage 20 years ago. I just took the ck as the damage was OK for me.
With the cost of labor and parts now days a totaled car isn't always the picture one might have in his mind of a totally destroyed vehicle beyond recognition.
Can I ask my insurance company how much they'd pay me for the car it if were totaled? Or that's something I shouldn't ask them?
If I do ask, I'm wondering if I'd get some generic, well, "that depends" or "the adjuster would have to see it" answer.
If you got any answer at all it would be Actual Cash Value (ACV). Nobody there would commit to a number, not even a wild guess.
Quote:
Originally Posted by selhars
If the payout is more than say several years of difference in premium, I still come out ahead having the coverage.
To me that's part of the math of deciding whether to drop collision or not.
Well, sort of.
I made my decision to self-insure comprehensive and collision decades ago on cars that I buy for $3000 to $5000. My savings have been at least the cost of one car in that price range for the past 30 years or so. Fortunately, the few accidents I have had, have been the fault of other drivers and their insurance companies have paid for the repairs.
I have a 2003 Dakota worth a couple of thousand and a 2011 Crown Vic worth about $4000. If either get wrecked (that isn't paid for by somebody else) or stolen, I have the money to go right out and buy a replacement.
You're not going to save much money if you self-ensure for a year or two, and if you finance your next car you'll have to have full coverage for the lender, unless you pay cash for a comparably priced vehicle.
You'd have to make a long-term commitment to inexpensive cars to make it worthwhile.
With regard to ACV, the price guides (KBB, NADA, Edmunds) may give you a rough figure but you'll have to reduce that figure by about 10% to 15% and adjust for your deductible.
The insurance industry has been using CCC for valuation for quite some time.
CCC has become so entrenched in the insurance industry that if you went to court on a value dispute, you'd lose. My gut reaction to CCC originally was that it was a scam to allow insurance companies to low-ball loss settlements. My opinion changed a few months ago when I evaluated a CCC report for a poster here who wanted $15,000 for his car and CCC came up with $11,500 based on their search of dozens of comparable cars. I did an independent search and found comparable cars in same price range and was impressed with how thorough CCC's evaluation was.
Bottom line, self-insuring comprehensive and collision is not for everybody.
I'm going through this analysis right now. 70 years old, and my "rest of my life" car will be payed off this November. My driving is down to 5,000 miles per year, daytime only, and any significant precipitation is a no go. Odds of an accident are slim, but book value is still high, and I don't relish taking on another car loan if my current car is totaled.
With the cost of labor and parts now days a totaled car isn't always the picture one might have in his mind of a totally destroyed vehicle beyond recognition.
Oh, trust me, I know. Years ago a guy high on pot rear ended my last car while I was stopped at a red light. (Pushed me into the intersection. It was right before the light was about to change so cross traffic had already stopped, or I could have been T-boned by crossing traffic. He left the scene and cops caught him two blocks later. Anyway,.....)
The only visible damage was my back bumper was hanging down a bit. Literally nothing else. If the adjuster found anything else he didn't tell me. The car was 10 years old, and the insurance company totaled it. I fought with them not to. But they wouldn't budge. I thought about buying it back, and getting it fixed myself. But then that would go on the title and I couldn't get collision on it again. So I just took the payoff.
My current situation is:
I only drive to work one day a week. BUT that one day is 52 miles each way, mostly on a major interstate. So if, G-d forbid I have an accident, I'm thinking it would definitely one that WOULD end up with the car totaled. (Of course, me not being hurt, would be more important. But That other part is the car side of the picture.)
BTW -- I could pay cash for a new car IF I had to. Wouldn't want to give up all that cash, of course. So might finance half. But IF I had to I could pay cash. I'm trying to keep the current one for another 17 years.
As a complete aside, anyone have numbers on how low your annual mileage has to be to get the low mileage discount? is it 5K? 3K? and how much premiums go down.
If I go 100% remote my mileage will drop like crazy.
Person said cash value would be determined at that time.
So no figure at all on how much I'd get. I asked her would it just be the KBB value.
She danced around that, just repeating about cash value at the time.
She said travelers doesn't have a discount for low mileage.
Said it's based on "use."
Was told changing usage from commuting to pleasure would lower premium one dollar.
I may go 100 % remote for work.
Looks like I can't count on that saving me any money on car insurance.
Person said cash value would be determined at that time.
So no figure at all on how much I'd get. I asked her would it just be the KBB value.
She danced around that, just repeating about cash value at the time.
She said travelers doesn't have a discount for low mileage.
Said it's based on "use."
Was told changing usage from commuting to pleasure would lower premium one dollar.
I may go 100 % remote for work.
Looks like I can't count on that saving me any money on car insurance.
It sounds like you're at about the bottom of their premium profile.
Been with them more than 20 years....with auto, home and umbrella.
Never an accident. Couple of windshield nicks resin-filled.
I was unclear, I meant to say that it sounds as though you're as low on premium price as they'll go if there was little change between the commuting profile and WFH.
We found the same thing last year when Mrs. NBP retired, the premium dropped very little.
Yes.
My last job was 5.5 miles each way commute, for 11 miles, only four days a week.
That, plus around the suburbs weekend shopping...I was already under 100 miles a week.
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