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I'm debating whether to drop collision coverage on my car.
I've Neve thought the difference in premium was enough to make it worth dropping collision.
Plus I'd like to get something for the car, if damaged.
Without collision I get squadoosh. zip. zilch. nada.
-- Is there an age of a car in years where beyond that the condition doesn't matter -- where they'll go it's xx years old here's what you get -- period. They don't care how it runs or looks.
-- 2006 Acura RSX
-- Runs like a charm. Mechanically excellent.
-- Body has some rust damage and some black scrape marks from pulling to close to the cement blocks at the front of some parking spaces.
-- Excellent condition inside. One owner/one driver.
In my opinion, if you have enough money in reserves to "self insure" your own car, then you should. What I mean is that if you are able to keep an emergency fund saved up of about what your car is worth, and it wouldn't be a huge financial hit if you had to use that money if you crashed your car, then full coverage could be a waste of money.
Also keep in mind that the amount of insurance that you have on your vehicle is irrelevant if the accident isn't your fault. If it's the other driver's fault, their insurance should pay 100% of what your vehicle was worth, no matter what amount of coverage or deductible you have.
Every person's situation is different. If it brings you peace of mind to have full coverage and a low deductible, and you don't keep a lot of cash on hand to cover unexpected events, then by all means keep the high-level insurance going. If you have the means and are alright with shouldering some of the risks, maybe it's smart drop some of your coverage.
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 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.
I would imagine that they should be able to tell you the maximum they would pay out in the event of damage to your car - it's something they'd need to be able to look up or calculate in the event of a wreck anyway - that's part of their core business as an insurance company. It shouldn't be too hard for them to come up with the figure.
I wouldn't be worried about asking them this - you could always explain that you're trying to reckon if the collision coverage is worth it at this point - nothing wrong with asking this. Don't forget to subtract whatever the deductible on the policy may be too.
I agree with you that it comes down to a comparison of what the collision provisions are actually costing you annually, and how much - maximum - you would receive in the event of an accident.
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 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.
Go to a site such as kbb.com and figure out the approximate value of your car yourself. Then subtract whatever deductable you have with your coverage, and there you go.
And remember, you're only "coming out ahead" if you actually get into a wreck that was caused by you. Chances are that won't happen and it will be the insurance company that gets the most money in the long run. That's how the game works, most of the time they win.
Like I mentioned before, if you're poor and live paycheck to paycheck and a crash of your 17 year old vehicle will financially devastate you, then keep up with your full coverage. If you are better-off and can afford the risk, drop the coverage and hope that you wont need it, but take comfort in the fact that you'll be alright either way.
Keep looking auto-trader and auto-tempest to know current asking prices of your vehicle. You’ll need to know these numbers when negotiating with insurance person on replacement value if you keep full coverage and it gets totaled. If you don’t do that, insurance will try and cut you smallest possible check as payment, and why wouldn’t they?
...... Don't forget to subtract whatever the deductible on the policy may be too.
I agree with you that it comes down to a comparison of what the collision provisions are actually costing you annually, and how much - maximum - you would receive in the event of an accident.
...............
Oh crap. I forgot all about that.
Thanks.
I think I'd still come out ahead with coverage. But that's definitely part of the calculation.
Quote:
Originally Posted by bfrabel
....
And remember, you're only "coming out ahead" if you actually get into a wreck that was caused by you. Chances are that won't happen and it will be the insurance company that gets the most money in the long run. That's how the game works, most of the time they win.
Like I mentioned before, if you're poor and live paycheck to paycheck and a crash of your 17 year old vehicle will financially devastate you, then keep up with your full coverage. ......
Different policies
have different calculations. In some cases they have to pay whatever you can prove it will cost to replace the car. However you usually end up settling on an amount.
You can ask but they probably will not tell you what they woudl pay for it if totaled. That depends on the condition, the market, any covered upgrades and sometimes how hard you negotiate.
You can insure anything - at least with some company. WE had a car that was totaled three times. We just kept buying it back, fixing it and reinsuraing it. However once it has salvage title, it is really hard and really expensive to find someone to insure it.
In the Car Insurance subforum, in one of the many recent post about car valuations when a total loss is involved, adjusterjack posted a link to each state's insurance regulator's legal requirements that insurance companies must follow when calculating the value of a vehicle for a total loss.
As each state has their own requirements as to how these calculations are allowed, what occurs in one state may not apply to another state. There is also a wealth of information in that sub-forum as to what may also be allowed as a recovered expense (beyond just the value of the physical vehicle) that often is overlooked by consumers when a total loss is involved. I would suggest you read through the many post on this subject.
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