Dropping Collision Insurance ?

Discussion in 'Archived Threads 2001-2004' started by Alex S, Mar 3, 2003.

  1. Alex S

    Alex S Second Unit

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    At what age of your car do you drop Collision Insurance ?

    Mine is 8 years old and I can save about $165.00 every six months if I drop Collision.
     
  2. Brian Perry

    Brian Perry Cinematographer

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    The rule of thumb I have heard is that you should drop collision/comprehensive (theft) once the vehicle is worth less than $3,000.
     
  3. Bruce N

    Bruce N Second Unit

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    If your car is totalled tomorrow can you afford to replace it out of your pocket? If not you should think about keeping your collision insurance.

    Bruce
     
  4. KyleS

    KyleS Screenwriter

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    Both Brian and Bruce make good points. Once my RX-7 dropped below a blue book value of 4,000 I dropped the collision on it because if I were to get in anything more then a fender bender (Less then $500 damage) then the insurance company would most likely total the car and give me less then what it was worth. Of course it is still a risk but at under 5,000 if you could afford to replace it then is it worth it to you for 170 per 6months? Although I don't have Collision I do keep uninsured motorist in case the guy that hits me doesn't have insurance. Other then that I would chalk up an accident that is my fault as a lesson learned on my cheap car.

    KyleS
     
  5. MarcVH

    MarcVH Second Unit

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    There are a number of factors, not the least being whether the original poster lives in a no-fault state (and, unfortunately, his profile doesn't indicate a location. [​IMG] )

    In general, if totaling the car in question would not cause you too much financial burden, and you (and anybody else who drives your car) are a cautious and safe driver, it's something to consider. Also a factor is what you would do with the $165 saved by dropping the coverage -- use it to bolster your emergency savings, or blow it?
     
  6. Masood Ali

    Masood Ali Supporting Actor

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    I dropped collision on my car a year and a half ago because the KBB was right around $3000 when I did it. That has saved me about $2500 to date.
     
  7. Alex S

    Alex S Second Unit

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    I live in NY and the blue book value for my mini-van is 8,000.
     
  8. KyleS

    KyleS Screenwriter

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    Well if the Blue book of your car is $8,000 could you replace that 8K without problem if you were to cause an accident or be forced into one? If no is your answer then I would keep the collision on your car. Since you would only be saving $330 per year by dropping your collision it would take you 24 years to hit that amount. [​IMG] If it was me I would wait a little while before dropping your collision but it is your money.

    KyleS
     
  9. BrianW

    BrianW Cinematographer

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    What Kyle said. Unless you have thousands in the bank for just such an emergency, you should probably keep the collision insurance on an $8000 vehicle.
     
  10. Alex S

    Alex S Second Unit

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    Thanks guys.

    [​IMG]
     
  11. Scott Van Dyke

    Scott Van Dyke Supporting Actor

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    '94 Toyota Carolla here. I dropped collision/comprehensive the day I paid it off from the bank. That was almost 2 years ago. I've saved plenty. My car is 9 yrs. old and only has 60K. I'm the second owner. I figure the car has another 150K at least.
     

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