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Car Insurance Question

post #1 of 5
8/3/09 at 11:12am
Thread Starter 
I recently read that you should opt out of both Comprehensive and Collision insurance if the amount you pay per year in insurance is equal to or more than 10% of the value of the car.

Does this sound accurate?
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post #2 of 5
8/3/09 at 11:58am
It is a bit more complex in my opinion. Is this a daily driver? How much will it cost you to pay for a rental car while your accident is evaluated, and how quickly can you find a replacement vehicle?

Just a thought.
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post #3 of 5
8/3/09 at 4:23pm
comp and collision are pointless is your car isn't worth very much - because you pay the deductible first (usually $500 for most people) an the insurance company pays the rest - so if your car is only worth $2k, you'll only get $1500, which is all the money you've been paying to have the car insured in the first place...
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post #4 of 5
8/3/09 at 4:34pm
Quote:
Originally Posted by whusurdadi View Post
comp and collision are pointless is your car isn't worth very much - because you pay the deductible first (usually $500 for most people) an the insurance company pays the rest - so if your car is only worth $2k, you'll only get $1500, which is all the money you've been paying to have the car insured in the first place...

I agree with that, but if your car is valued above ~$15k then I honestly don't think you'll reach that break even point where your car depreciates below the amount you've spent on additional comp/coll coverage unless you keep the car (and do not have an accident) for maybe 10+ years.

So short answer, cheap car, below maybe $5k, maybe not worth it.. Of course there's always that chance you could have an accident in you first month and total the car.. You never know, you're just playing the odds. I'd rather be covered and not worry about it, just my preference.
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post #5 of 5
8/3/09 at 11:38pm
Quote:
Originally Posted by ClaretandBlue View Post
So short answer, cheap car, below maybe $5k, maybe not worth it.. Of course there's always that chance you could have an accident in you first month and total the car.. You never know, you're just playing the odds. I'd rather be covered and not worry about it, just my preference.
Same here, I'm fairly risk averse when it comes to things like this.
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