Do you carry full coverage auto insurance on your older vehicle?

[traces7]

We were considering dropping the collision and/or comprehensive insurance on my car. It's 13 years old and has 233,000 miles on it. I don't think the car is worth more than $500 or $1000 (Blue Books says $2000, but I don't think so!) I pay $112 every 6 months for the collision and comprehensive on my car. The deductibles are $600/collision and $500/comprehensive.
Should I consider dropping it? Anyone have any advice? Thanks so much!

 

[usnuzuloose]

We have 2 vehicles, the car is 2001 and carry full coverage. The other is a 2000 work van and I have to carry two different insurance coverages. I was so grateful to have full coverage on the other two work vans. One literally burned to the ground. So the coverage on the van was paid for by both. The other van well a lady knocked down a whole carport and hit the van which they rendered totaled. So I carry full coverage.

 

[christineann]

I have a 15 year old pickup that is in excellent condition with 212k miles, and I am keeping full coverage on it. The difference wasn't enough to make me drop collision coverage.

 

[pearlieq]

I did. Once my car got to be worth about $3,000ish and I had savings to replace it, I dropped the coverage. I figured it was much more likely to die of old age than in an accident. Turned out to be true.

In your situation, the pertinent question would be whether you can afford to replace the car on short notice should you need to. Insurance is meant to protect you from risks you can't afford to cover on your own. It sounds like you're likely to get a very small payout should the car be totaled. Depending on how much the comprehensive coverage is, you might be better off just saving that money for the car fund.

 

[momof3ds]

We dropped the collision and comp coverage on our beat up 2005 van after we added a newer 2nd car. full coverage on the newer car and basic on the van plus roadside assistance.

 

[traces7]

In your situation, the pertinent question would be whether you can afford to replace the car on short notice should you need to. Insurance is meant to protect you from risks you can't afford to cover on your own. It sounds like you're likely to get a very small payout should the car be totaled. Depending on how much the comprehensive coverage is, you might be better off just saving that money for the car fund.

I definitely don't have the money to replace it at this point! We're trying to pay off another vehicle first, than save/buy a new car for me, hopefully within the next year or so. The comprehensive is only $36 every 6 months, the collision is $76 every 6 months, so $112 every 6 months total, I don't think that's too bad, which is why I've kept the full coverage.

 

[sksjasams]

We have liability only on our 02 Buick Century and 03 Ford Taurus. We recently got an 07 Grand Caravan and we put full coverage on it.

It is the first time we have ever had full coverage on a vehicle. Our cars have always been older models. DH and I have been married almost 18 yrs with no car accidents (thankfully). With the money we saved on full coverage on two cars for 18 yrs, we easily could have replaced them both.

 

[pieface]

Depends how much money you will save. If is just a small savings keep the full coverage in my case we dropped it because we saved a fair amount of money. When the car gets old it doesn't take a lot of damage to consider the vehicle as totaled and you get payment for the vehicle and its not much. I've seen cars with damage that exceeds the value of the car being totaled but the damage was not functional and the car could still be used. Just have to weigh your options.

 

[pixidust1976]

After spending a decade in auto claims working for Progressive and Allstate, I have to tell you that for $112 I would definitely keep the full coverage. Here is why:

You are in an auto accident where you say it was the other person's fault and they say it was your fault. If the other person uses their collision coverage to repair their car, their insurance company will subrogate (ie. come after your property damage coverage on your car insurance for repayment). Their insurance will also deny any payment to you for repairs because their insured says it was your fault. Often, if you don't have collision coverage, your insurance company will not waste time investigating the accident because they don't have to pay you and they don't have to pay the other person because you are stating that the loss was the fault of the other person.

Then your insurance company will get the subrogation paperwork and one of two things will happen... they will just pay it and an at fault accident will be logged against you raising your insurance rates or they will deny it and the other insurance company can then take the case into arbitration. Not often does the insurance company of the person with no collision coverage have a well investigated case. Usually that insurance company only starts investigating the accident once they receive the subrogation/arbitration paperwork and by that time the accident happened months ago and what evidence they can gather is really not going to prove a good case in arbitration. If your insurance company loses in arbitration, then an at fault accident is on your record raising your insurance rates.

Often times the raise in rates is much more than the $112 you pay now to just be fully covered, AND if you can prove the other party is at fault then your insurance will subrogate them to get your deductible back for you too.

I would personally keep the full coverage.

 

[amylevan]

From Consumer Reports:

Drop collision coverage
If you have an older car worth less than 10 times your annual collision and comprehensive premiums, your payments are more than youd probably recover in a claim after your deductible. In that case, your vehicle will be declared a total loss if the cost to repair it surpasses its declining book value. So while the car might be repairable, you wont collect enough to cover the cost.

 

[cheap traveler]

PLEASE tell me where you live, I would LOVE to have such cheap insurance!!

Here in NY, at 31 years old with a 15 year driving history and only one accident (15 years ago), the insurance on my 5 year old vehicle is $820 a year! And that is actually quite low, for full coverage.

Personally, for that small amount of money, I would probably keep it. Basic coverage would cover a at-fault accident, you don't need collision for that. BUT, if the cost of collision was 3/4 the cost of my insurance, and my deductible would probably knock out any payment in the case of a total-loss, I would drop it.

So, nice wishy-washy answer

 

[ceemys]

I have a 2004 Alero and it is paid off. Front bumper is broken (thanks to Indiana icy streets and an ice hill). so the car isn't worth much.

For full coverage, $500 deductible on collison and comprehensive, rent a car, 50/100K on medical (I think) etc, I pay $744 annually.

I keep thinking of dropping also, but I know as soon as I do, something will happen, so I always talk myself out of it. So, I just keep paying. lol I don't have the immediate funds to replace my car since I am saving for my house.

 

[angierae]

We are not paying collision on my daughter's 99 VW WITH 160k miles on it, but my 2008 Cobalt does. Michigan has weird insurance, though, in that your insurance pays for your car repairs regardless of fault, so our rates are higher than in other states.

The KBB private sale value of my car is $7,208, so I feel that at this point, keeping it fully insured is worth it. (I pay about $80/month.)

 

[bookgirl]

I used to do liability only once a car had no lien.

Now I carry full until my 'value' is below $2000.

At that point the premium is not worth the payout value. My last car never got below that as it had a high resale even old. But I am comfortable with that limit.

I tend to drive my cars for a long time.

 

[tvguy]

Anytime my cars fall below $3,000 in value, I dump collision, but I keep everything else. As long as I don't have a claim more often than every 3 or 4 years, I am money ahead. I've had 2 claims totalling $200 in the last 40 years, so I am ahead of the curve financial still. I also carry $1,000 deductable.

My 1987 has no collision, but my 2000, 2003, 2006 and 2007 do.

Now, my 1987 is no longer is regular blue book, but I just discovered "Kelly Blue Book for Classic Cars"........and according to that it's worth $9,000 ! Not sure insurance would agree, but certainly food for thought.

 

[wiigirl]

I didn't drop full coverage, but I got a higher deductable on it so the payments were lower.

 

[Riles_and_Gabe]

When I used to work in an Insurance Sales office, I would always ask the person if they would be able to come up with the money to replace the car if it was totaled or had a very expensive repair. You should base your decision on that answer.

 

[yoopermom]

Do you have deer and icy roads like we do? I keep full coverage on all 3 of ours because it seems as though one of us hits a deer every other year.

Terri

 

[traces7]

PLEASE tell me where you live, I would LOVE to have such cheap insurance!!

Here in NY, at 31 years old with a 15 year driving history and only one accident (15 years ago), the insurance on my 5 year old vehicle is $820 a year! And that is actually quite low, for full coverage.

Personally, for that small amount of money, I would probably keep it. Basic coverage would cover a at-fault accident, you don't need collision for that. BUT, if the cost of collision was 3/4 the cost of my insurance, and my deductible would probably knock out any payment in the case of a total-loss, I would drop it.

So, nice wishy-washy answer

We live in Wisconsin. My total premium is $258 for 6 months. (The $112 is the collision and comprehensive portion of that premium.) So I pay a little over $500 annually. Don't know if that's cheap or not???? We do have both vehicles insured plus our homeowner's insurance is with the same company. Allstate.

 

[traces7]

When I used to work in an Insurance Sales office, I would always ask the person if they would be able to come up with the money to replace the car if it was totaled or had a very expensive repair. You should base your decision on that answer.

Thanks! My answer is no to both!!!