The credit union required me to have full coverage insurance while I was paying off the loan, but now the car is paid off. KBB says my car is worth $11,000, and for 6 months full coverage I pay around $550. Should I stay with full coverage, and when did you change over to liability for your car?

 

When the cost of an average out of pocket collision exceeds the value of the car. You could see what comprehensive coverage with $1000 deductible would save you....

 

I have heard that once your deductible is 10% of the value of your car you should drop full coverage.

 

I don't know how insurance companies operate in your location, but having full coverage on a car can still have some benefits regardless of age. At least in Canada, if someone hits or damages your car and your insurance company feels confident you are not at fault, they will pay for any repairs and then recapture the amount from the other driver's insurance. For example, it someone goes through a red light and hits your car, and you have full coverage, you can have it repaired immediately by your insurance company even though you are not at fault. Your insurance company will then in turn go after the other driver's insurance. Waiting for an at fault insurance company to authorize repairs can often take many months. Your rates will not rise or will the incident have a negative mark on your record.

For this reason, all of my vehicles have full coverage regardless of age or value.


Terry

 

at least keep on comp for vandalism and hitting animals on the road

 

When there is no more money because the economy has me f#$# up.

 

In my opinion you should keep full coverage because if your car where stolen and not recovered you would want to be reimbursed something right? Or can you afford an $11,000 loss at this point. Also if your car was damaged in an accident these cars aren't cheap to fix so believe me unless its very minor like a scratch only you will exceed your deductible in most cases.

 

When I can either write a check to pay for the damages or I don't need the car anymore. So for me, I'm keeping as much coverage as possible.

 

Rule of thumb I learned was if the car is 10 or more years old, its probably not worth keeping collision, just liability.

Depends on how much you want your car covered in the event of an accident based on its age.

 

When the value of the car is less than 3x the total insurance premium.

 

If you are confident in your driving and know you will not be in an at-fault accident you should be ok to get rid of collision. I still keep comprehensive on my truck though in case of deer/vandalism/theft......

 

When you can afford to walk away from a total loss. For me that's probably when the value of the car gets down to ~$5K or so...

But I do raise the deductible (to $1000) as soon as they are paid off. A thousand dollars worth of damage is almost nothing, and in fact probably is not enough to keep the car from functioning. And it may be small enough that I can fix myself. But the change in your premium can be pretty substantial.

 

Yes, because everyone else - the non-confident ones - plan on getting into an accident.

 

^ hahaha

 

you'll laugh, on my beater that's worth maybe 1500 bucks i got full coverage. just due to all the assholes around here that DUI then drive off at the scene of a crash. yes i know i could sue them for my damages and win easily. but i don't have the time and i don't waste my time because usually their dead broke anyhow. so i pay my full coverage rate and let the insurance company in the event i'm hit by one of these idiots i'm covered.