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bcampbe7
12-10-2007, 11:23 AM
At what point do you switch from full coverage insurance to liability only? Or do you?

We have a car (daily driver for me) that is only worth around $5000. We continue to pay full coverage on it, but we were thinking about changing to liability only.

Bad idea? Should we continue to pay for full coverage insurance?

TRBenj
12-10-2007, 11:28 AM
How much extra is the collision coverage costing you? In my experience, it would have added ~$500 to the annual premium on an older car.

Leroy
12-10-2007, 11:34 AM
Hey Beau good question, I'll be intereste to see the answers as I'm sure you'll get varied answers.

For my son's car, ~$5500 we only bought the bare minimium and told him if he wrecked it his car was gone, now 19, wreckfree so far, he told me the other day that made him think about not wrecking.

Factors: Since you are betting against the insurance company look at the statistics for you. Your driving record, how likely are you going to be at fault or involved with someone without insurance, ratio of cost to replacing the car, could you pay to replace it from your cash, what makes you comfortable?

I personally change over at ~$10k and ratio of 10-15 to 1.

bcampbe7
12-10-2007, 11:35 AM
Not sure... I haven't called my agent yet. I was just curious if there was a certain point where it is not worth the expense of full coverage. I know people that drop full coverage as soon as they pay-off their vehicle. Others keep full coverage till they get rid of the vehicle.

bcampbe7
12-10-2007, 11:37 AM
Factors: Since you are betting against the insurance company look at the statistics for you. Your driving record, how likely are you going to be at fault or involved with someone without insurance, ratio of cost to replacing the car, could you pay to replace it from your cash, what makes you comfortable?


That's what I was thinking too Leroy.

Monte
12-10-2007, 11:42 AM
At what point do you switch from full coverage insurance to liability only? Or do you?

We have a car (daily driver for me) that is only worth around $5000. We continue to pay full coverage on it, but we were thinking about changing to liability only.

Bad idea? Should we continue to pay for full coverage insurance?

It is ALWAYS your call (disclaimer);)

I always tell folks that you need ins on anything that would put the family in a serious financial bind in the event of a loss.

I would ALWAYS keep comprehensive b/c it is so cheap.
Comp covers Windshields,Trees, animals, hail, wind, (mostly- things that are not your fault)<<< there are some exceptions...

Collision covers the repair of YOUR vehicle for accidents in which you were at fault... or hit and runs in a parking lot... A lot of folks feel that if THEY are at fault, they'll take the financial hit...

A lot more I could say, but you get the jist...

bigmac
12-10-2007, 11:53 AM
That bet against the insurance company is like any gamble - it's not just the odds that you will get in an accident, it will depend in large part on your ability to afford losing the bet.

Prostar Rich
12-10-2007, 12:26 PM
At what point do you switch from full coverage insurance to liability only? Or do you?

We have a car (daily driver for me) that is only worth around $5000. We continue to pay full coverage on it, but we were thinking about changing to liability only.

Bad idea? Should we continue to pay for full coverage insurance?


Make sure you know exactly what the value is or how the value is determined by your insurance company. Keep in mind that auto body repairs add up fast and that in the event of a accident your insurance will most likely total the car. You should also look at how long do you plan on owning the car.

Prostar Rich

bcampbe7
12-10-2007, 12:28 PM
I just got off the phone with my insurance agent. My premium for collision only adds $99 every 6 months. I'll keep full coverage for that amount of money. :cool:

Workin' 4 Toys
12-10-2007, 08:51 PM
I am not sure why, but...
I have 2 policies (I know of) that are CHEAPER to have full coverage.... I have no idea why, and I didn't care to ask to be honest.