When do you drop collision?

[Kuato]

Originally Posted By: ddombrowski
My rule of thumb is to always insure what you can't afford to replace, not what is inconvenient to replace.

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Not a bad way to go. Our two vehicles are only $17 and $60 every 6 months respectively, so it's a no brainer to keep the coverage. IMO it's not until your vehicle is worth less than 1-2k that it starts to become a decision.

 

[djb]

The insurance company will target an expected pay out of less than 50% of the premium. So, just based on the numbers, you should only carry the minimum insurance.

There are other factors, though, that change this. Obviously, if you can't afford a replacement, you need insurance. In some cases the insurance company can get a better repair rate, or faster service. Perhaps there is a risk factor the insurance doesn't take into account (you are a really bad driver and your luck is about to run out). Finally, if a collision loss is something you would worry about, that's exactly what insurance is for.

Liability insurance, on the other hand, is a much more nuanced decision. Just having the insurance company's lawyers ready to fight unreasonable claims can prevent those claims in the first place. So the insurance can both make the company money while lowering your expected cost.

 

[Cujet]

Over the long run, it is always cheaper to "self insure". (looking at the big picture)

Put another way, paying for collision is betting against yourself.

However, I carry full coverage for the first 5-7 years. After that, the vehicle has depreciated significantly in value, aftermarket and used parts are often commonly available for a fraction of the new price.

 

[Colt45ws]

I dropped it on the '04 after I paid it off. I have the '02 to drive if something happens, anyway.

 

[hattaresguy]

Collision is pretty cheap so I carry it.

 

[daves87rs]

If the cost was not so high here, I'd keep for it on full just for kicks....I'd kill for 363 a year.....

Anyways, I'd keep it on as long as it is worth it if it gets totaled out...

A few years ago a co worker got an extra 2 grand totaled out than what she paid for it six months before.....

 

[rjundi]

I own a $5000 car and $13000 suv. I carry full insurance although with $500 deductible on collision and $100 on comprhensive.

It costs $900/year with as much liability as possible, rental coverage, and road hazard coverage.

I am keeping mine.

 

[Bamaro]

It also depends on how your state handles fault. In Maryland if you are judged to be 1% at fault and the other party 99% at fault, you can not collect from the other party and must rely on your collision coverage or pay for repairs yourself.

 

[Norm Olt]

Dropped it on the 420SEL's when I bought the 2nd '88: I have an entire car as a spare...

Cheers!