Dropping Collusion Insurance [Archive]

Teacher Terry

2-24-20, 11:06pm

So we keep our cars until dead and a friend of mine used to be a insurance agent said that they drop it after 5 years. My Toyota Corolla is 12 years old with 55k miles. We have a 500 deductible and pay 465/ year for collision. BB values are between 4600-6200 for good condition but I know from past experience you never get that from insurance if it’s totaled. They may decide it’s only fair condition, etc. What do you guys do?

iris lilies

2-24-20, 11:39pm

We drop collision insurance before the value gets that low, I’m thinking around $7000 or $8,000.It’s all about what level of risk you want to take.

Many years ago my car was stolen. DH called the insurance company to report it for the liability issue with somebody else driving it. The car was financially recovered however.

Yppej

2-25-20, 6:23am

In the past I have called the insurance company to see what they would pay if my car got totaled and then made my decision.

catherine

2-25-20, 8:27am

I drop collision when the car is about 5-6 years old. My car is now 13 years old and I haven't had collision on it for years. I tend to self-insure if possible. DH has the opposite mindset. We are now debating over getting vision and dental insurance. I say by the time you pay those premiums you could have paid for a crown or an eye exam. He likes knowing he'll pay less at the doctor--he doesn't see the monthly costs like I do because I pay the bills. (A bit of a sidebar, but related.)

SteveinMN

2-25-20, 11:18am

To date, removing collision coverage on either our 9-year-old car or our 18-year-old car would save all of $140 a year. Given that the cars are valued around $9-10,000 (together), spending even $60 a year on my car to avoid spending $3,000-3,500 self-insured without collision seems like a decent bet to place.

pinkytoe

2-25-20, 11:27am

This topic got me to pull out my policy and check. We have one 9 yr old car with 40K miles on it and are paying annually:
Liability - 388
Comp - 372
Collision - 268
It is the comprehensive that I question the most...but this definitely needs some updating. They give us a break on our house but looks like the make up for it on the car.

sweetana3

2-25-20, 11:43am

Side note on car insurance: We are retired and our agent suggested we might reduce our insurance by having a tracking device record our driving for about 3-4 months. Just finished and their online system says we will qualify for a 40% discount. Worth inquiring about. We have Nationwide.

bae

2-25-20, 2:54pm

“Collusion Insurance” seems like the sort of thing politicians would buy.

iris lilies

2-25-20, 3:15pm

“Collusion Insurance” seems like the sort of thing politicians would buy.
except that no carrier would insure them, haha.

razz

2-25-20, 3:17pm

“Collusion Insurance” seems like the sort of thing politicians would buy.

:laff:

Gardnr

2-25-20, 9:12pm

This topic got me to pull out my policy and check. We have one 9 yr old car with 40K miles on it and are paying annually:
Liability - 388
Comp - 372
Collision - 268
It is the comprehensive that I question the most...but this definitely needs some updating. They give us a break on our house but looks like the make up for it on the car.

Holy crap! That's more than I pay for full coverage on my 2016 Mercedes!:0!

jp1

2-26-20, 4:46pm

For us it would save $184 annually to drop collision on my 18 year old Honda with 47k miles. Having it came in handy 1 1/2 years ago when SO got rear ended and shoved into the car in front of him. We got a check quickly (and a very fair valuation) instead of having to wait 3 months for the other guy’s insurance to cough up the money.