Cancelling Comp and Collision?

[suesinfl]

I canceled my C&C today and supposedly it will save me approx. $300 per year. My car is a 2005 Chrysler Convertible Touring model. It is in great condition both body and mechanical wise. I know that I “should” not have that coverage, but another part of me says “what if…?”

No public transportation where I live, but work is only about 7 miles on rural roads. I don’t drive much other to work and errands, so why am I having an anxiety attack over this (I hate not knowing that I don’t have a vehicle to use).

I finally have access to another vehicle, (my teen DD), if needed, but she is busy with work and school. I’m just worried that if something happens to my car, I will be screwed, transportation wise.

Please tell me if this was a wise decision.

[marvholly]

My auto insurance renews 8/1 so I just went thru this decision. I have a fairly basic 2000 Impala. When I checked its value online it was between $6500 - $7500. I am NOT willing to take that big a hit for some un/under insured yahoo. I did increase my deductible from $500 to $1000, changed companies and saved about $300/yr.

[mollyanna58]

It depends on the value of the car. A 2005 is still worth something. If someone else causes the accident, their liability coverage should pay for your car. If an accident is your fault, or you hit a deer, you won't have any coverage.

[Deleted]

Jul 4, 2014 5:35:36 GMT -5 marvholly said:

My auto insurance renews 8/1 so I just went thru this decision. I have a fairly basic 2000 Impala. When I checked its value online it was between $6500 - $7500. I am NOT willing to take that big a hit for some un/under insured yahoo. I did increase my deductible from $500 to $1000, changed companies and saved about $300/yr.

I think you  need to recheck that value.  I have a 2003 Honda Accord (top model) and the value of it isn't that high.  I did a quick calculation on Edmunds (obviously I had to guess) but dealer retail is around $3000. 

[alabamagal]

Marv, are you sure Impala is worth that much?  Unless super low miles, seems a bit high.

I have 2 young adults (used to be 3) on my insurance with older cars.  I drop collision as soon as I can.  I also have a $1000 deductible.  It has cost me only once.  My youngest had a Honda Accord and as soon as it was paid off I dropped collision $ comp.  Saved me $40 a month.  8 months later he got in an accident and car was totaled.  Value of car at the time was probably $2500.  So I saved $320 for 6 months and I did not get $1500 when it was totaled.  But then we sold the junked car for $350, so that helped a bit.

Having multiple cars at home (boys are in college now) has always helped ease the thought that we could get to work by car sharing.  It has also been pretty easy to replace a car when needed, but we like the time to shop carefully.  When DS totaled his car he was at college and lived close enough to walk to school/work and his brother was also at the same school, so he was not happy but not stranded.  His wreck was on Halloween and we got a replacement car just before Thanksgiving.

[Nazgul Girl]

   We dropped collision on my DH's 2002 Mazda Protege.   It's a great car with only 61000 miles on it, but the book value is around $ 4300, and we were paying pretty good money every year to keep the collision insurance on it.   We saved $350 per year when we dropped the collision insurance.   Our deductibles are at $ 1000 already for both cars.

[Peace77]

I dropped comp and collision on DH's car a few years ago when I realized that the car is worth less than the deductible.  He plans to keep it until it does and it still runsa great.

[Peace77]

Jul 4, 2014 8:58:02 GMT -5 @tbird said:

Jul 4, 2014 8:42:39 GMT -5 Peace77 said:

I dropped comp and collision on DH's car a few years ago when I realized that the car is worth less than the deductible.  He plans to keep it until it does and it still runsa great.

until it does what?

That was supposed to be  "until it dies"

[busymom]

If you cannot afford to replace your car, I wouldn't cancel comp & collision. The last accident I was in, the other guy was at fault, & he lied to the officer about having insurance (he had none). Fortunately, my insurance company went after him, & I even got my deductible back.

Just for fun, I went on the Kelly Blue Book website.  If it's a Chrysler Crossfire convertible, it's still worth over $10,000.  No way would I cancel C & C on that!

[The Walk of the Penguin Mich]

Jul 4, 2014 9:35:24 GMT -5 busymom said:

If you cannot afford to replace your car, I wouldn't cancel comp & collision. The last accident I was in, the other guy was at fault, & he lied to the officer about having insurance (he had none). Fortunately, my insurance company went after him, & I even got my deductible back.

Just for fun, I went on the Kelly Blue Book website.  If it's a Chrysler Crossfire convertible, it's still worth over $10,000.  No way would I cancel C & C on that!

Also, the value f your car is not strictly by the book.  The car is worth what you will pay for that model at a dealer.

I've received the totaled out cost for 2 cars, one stolen and one hit by an uninsured driver.  Both times, I received more than the KBB value.

[moneymaven]

I would change deductibles before omitting coverage on a policy, especially if you're traveling on rural roads. Just had a client (I work in incarnate) who went through 8 deer with 3 people in the car.

[Peace77]

Jul 4, 2014 11:18:05 GMT -5 moneymaven said:

I would change deductibles before omitting coverage on a policy, especially if you're traveling on rural roads. Just had a client (I work in incarnate) who went through 8 deer with 3 people in the car.

How will that help if the car is 20 years old and the KBB value is less than $1k?

[Deleted]

Jul 4, 2014 10:56:00 GMT -5 The Walk of the Penguin Mich said:

Jul 4, 2014 9:35:24 GMT -5 busymom said:

If you cannot afford to replace your car, I wouldn't cancel comp & collision. The last accident I was in, the other guy was at fault, & he lied to the officer about having insurance (he had none). Fortunately, my insurance company went after him, & I even got my deductible back.

Just for fun, I went on the Kelly Blue Book website.  If it's a Chrysler Crossfire convertible, it's still worth over $10,000.  No way would I cancel C & C on that!

Also, the value f your car is not strictly by the book.  The car is worth what you will pay for that model at a dealer.

I've received the totaled out cost for 2 cars, one stolen and one hit by an uninsured driver.  Both times, I received more than the KBB value.

that's why I use edmunds which tell you what you can expect for dealer trade-in, private party sale, and to buy from a dealer.  It also adjusts for location. 

[Deleted]

Jul 4, 2014 11:39:25 GMT -5 Peace77 said:

Jul 4, 2014 11:18:05 GMT -5 moneymaven said:

I would change deductibles before omitting coverage on a policy, especially if you're traveling on rural roads. Just had a client (I work in incarnate) who went through 8 deer with 3 people in the car.

How will that help if the car is 20 years old and the KBB value is less than $1k?

I think damage from hitting a deer is covered under comprehensive, not collision.  same as windshields, someone knocking your side mirror off with a football, and so on.

for a car with a value less than $1000 keep comprehensive and drop collision.

[8 Bit WWBG]

...:::"I did increase my deductible from $500 to $1000, changed companies and saved about $300/yr.":::...

I regret having done this, and when we got our new car, I lowered it back.  I've been in 2 accidents, and I never made enough in the piddling savings to warrant having to eat an extra $500.

I'm tempted to get a quote to lower it for homeowners too.  Although I wouldn't make a claim for anything small, its just nice not to have to deplete the EF when it happens.

[Deleted]

What is the NADA value for your car. You are self insuring for that amount. 

What is the uninsured driver limit on your insurance? I'm not sure how that works. I got hit by a vehicle that was uninsured and the claim hit my comprehensive in addition to uninsured. I couldn't understand it & didn't try to, but it was only a $4K claim so it made me wonder if they are somehow limiting the uninsured driver piece of the insurance because this area has a lot of uninsured drivers and they don't know how to drive correctly, lots of accidents!

EDIT: If it is a Sebring Convertible with 60.000 miles the value is about $6200. Is your savings on the policy worth covering a loss of $6K? Are you willing to self insure at that level?  

[The Walk of the Penguin Mich]

What is the uninsured driver limit on your insurance? I'm not sure how that works. I got hit by a vehicle that was uninsured and the claim hit my comprehensive in addition to uninsured. I couldn't understand it & didn't try to, but it was only a $4K claim so it made me wonder if they are somehow limiting the uninsured driver piece of the insurance because this area has a lot of uninsured drivers and they don't know how to drive correctly, lots of accidents

Depending on state you live in, carrying uninsured motorist only covers medical.  If you have damage to your property, then it oes under your comprehensive.  If you are not carrying it, you are SOL.

I ran into this when my Mazda was totaled out when hit by an uninsured driver.  I wound up having to pay my deductible, and my agent said I could sue the other driver in small claims court for it.  I should have, but between school and work, just didnt want the hassle at that time.

[Deleted]

I have a 2006 Toyota Corolla with 80,000 miles and a $250 deductible. It's ok to laugh; the deductible has been that for 40 years and never got changed. When I looked at changing it, it was chump change.

That said, the insurance is only $590 a year. Dropping collision, comprehensive, and uninsured would save me about $300 a year. I'm fine. DH's 2007 BMW got hit by someone who drove off. It has even less miles than mine (maybe 60,000). It would have really hurt to have had to cough up the $3,000 to fix it, and the damage wasn't that visible.

He was rather stunned when he saw the deductible, though. His had always been $1000, but when he switched to mine, the deductible was the same as mine. It was definitely a pleasant surprise.  He only pays $740 a year, though.

I know low deductibles discourage you from filing claims.  His last accident, though, was in the 1960s.  Mine was in the 1980s or early 1990s.

[moneymaven]

Jul 4, 2014 11:39:25 GMT -5 Peace77 said:

Jul 4, 2014 11:18:05 GMT -5 moneymaven said:

I would change deductibles before omitting coverage on a policy, especially if you're traveling on rural roads. Just had a client (I work in incarnate) who went through 8 deer with 3 people in the car.

How will that help if the car is 20 years old and the KBB value is less than $1k?

Not sure where you got 20 years old. The car in the OP is less than 10 years old.

If you're referring to your own car, and assuming you can take a hit for $1,000, you are better off with liability only, but not minimum limits. Statutory limits of liability are a joke.

Don't forget that at 20 years, some cars can be collectors items, so this is not a one size fits all statement.

[moneymaven]

Another thing to note for the OP, review all info on file with your agent. Confirm that they have your commute on file as 7 miles. Make sure they've noted it as garaged, if so. Ask what companies they've shopped coverage with. Ask for alternative deductible options. Ask about added coverage that you may be getting charged for but don't need, such as towing (if you have AAA) or rental coverage (as you mentioned access to another vehicle). All of these are factors in cost of coverage.

Also, if you have your coverage with a direct writer (such as Allstate or State Farm), seek out an independent agent and have them shop your coverage. If you need help finding an independent agent, you should contact the independent agency association in your state. Most have websites with lists of local agencies and the type of insurance they do.

[CCL]

Jul 4, 2014 14:49:15 GMT -5 @southernsusana said:

I have a 2006 Toyota Corolla with 80,000 miles and a $250 deductible. It's ok to laugh; the deductible has been that for 40 years and never got changed. When I looked at changing it, it was chump change.

That said, the insurance is only $590 a year. Dropping collision, comprehensive, and uninsured would save me about $300 a year. I'm fine. DH's 2007 BMW got hit by someone who drove off. It has even less miles than mine (maybe 60,000). It would have really hurt to have had to cough up the $3,000 to fix it, and the damage wasn't that visible.

He was rather stunned when he saw the deductible, though. His had always been $1000, but when he switched to mine, the deductible was the same as mine. It was definitely a pleasant surprise.  He only pays $740 a year, though.

I know low deductibles discourage you from filing claims.  His last accident, though, was in the 1960s.  Mine was in the 1980s or early 1990s.

Wouldn't the BMW have been covered by uninsured motorist coverage?

[CCL]

Jul 4, 2014 13:05:53 GMT -5 The Walk of the Penguin Mich said:

What is the uninsured driver limit on your insurance? I'm not sure how that works. I got hit by a vehicle that was uninsured and the claim hit my comprehensive in addition to uninsured. I couldn't understand it & didn't try to, but it was only a $4K claim so it made me wonder if they are somehow limiting the uninsured driver piece of the insurance because this area has a lot of uninsured drivers and they don't know how to drive correctly, lots of accidents

Depending on state you live in, carrying uninsured motorist only covers medical.  If you have damage to your property, then it oes under your comprehensive.  If you are not carrying it, you are SOL.

I ran into this when my Mazda was totaled out when hit by an uninsured driver.  I wound up having to pay my deductible, and my agent said I could sue the other driver in small claims court for it.  I should have, but between school and work, just didnt want the hassle at that time.

I've heard of this happening in no-fault states, but that's not how it works here.

[Deleted]

Jul 4, 2014 17:45:35 GMT -5 CCL said:

Jul 4, 2014 14:49:15 GMT -5 @southernsusana said:

I have a 2006 Toyota Corolla with 80,000 miles and a $250 deductible. It's ok to laugh; the deductible has been that for 40 years and never got changed. When I looked at changing it, it was chump change.

That said, the insurance is only $590 a year. Dropping collision, comprehensive, and uninsured would save me about $300 a year. I'm fine. DH's 2007 BMW got hit by someone who drove off. It has even less miles than mine (maybe 60,000). It would have really hurt to have had to cough up the $3,000 to fix it, and the damage wasn't that visible.

He was rather stunned when he saw the deductible, though. His had always been $1000, but when he switched to mine, the deductible was the same as mine. It was definitely a pleasant surprise.  He only pays $740 a year, though.

I know low deductibles discourage you from filing claims.  His last accident, though, was in the 1960s.  Mine was in the 1980s or early 1990s.

Wouldn't the BMW have been covered by uninsured motorist coverage?

I'm not sure.  But since we paid Kelly's BB value for it about a year ago at $16,000, it is certainly too early to find out the hard way.  BMW's start off at such a high value that even at six years when we bought it, it was worth more than we paid for a year-older Corolla.

With uninsured, you do have to pay the deductible.  I'm not even sure they sell it separately since medical is covered under liability.

[The Walk of the Penguin Mich]

Jul 4, 2014 17:53:44 GMT -5 CCL said:

Jul 4, 2014 13:05:53 GMT -5 The Walk of the Penguin Mich said:

What is the uninsured driver limit on your insurance? I'm not sure how that works. I got hit by a vehicle that was uninsured and the claim hit my comprehensive in addition to uninsured. I couldn't understand it & didn't try to, but it was only a $4K claim so it made me wonder if they are somehow limiting the uninsured driver piece of the insurance because this area has a lot of uninsured drivers and they don't know how to drive correctly, lots of accidents

Depending on state you live in, carrying uninsured motorist only covers medical.  If you have damage to your property, then it oes under your comprehensive.  If you are not carrying it, you are SOL.

I ran into this when my Mazda was totaled out when hit by an uninsured driver.  I wound up having to pay my deductible, and my agent said I could sue the other driver in small claims court for it.  I should have, but between school and work, just didnt want the hassle at that time.

I've heard of this happening in no-fault states, but that's not how it works here.

That is why I said depending upon which state you live in.

[ZaireinHD]

funny! even my insurance agent told me to drop full coverage and just keep liability on my 16 year old Honda Accord show car!

I said no - that's ok - I'll keep full coverage - because when the unthinkable happens I want something back!

[ZaireinHD]

Jul 4, 2014 3:20:25 GMT -5 suesinfl said:

I canceled my C&C today and supposedly it will save me approx. $300 per year. My car is a 2005 Chrysler Convertible Touring model. It is in great condition both body and mechanical wise. I know that I “should” not have that coverage, but another part of me says “what if…?”

No public transportation where I live, but work is only about 7 miles on rural roads. I don’t drive much other to work and errands, so why am I having an anxiety attack over this (I hate not knowing that I don’t have a vehicle to use).

I finally have access to another vehicle, (my teen DD), if needed, but she is busy with work and school. I’m just worried that if something happens to my car, I will be screwed, transportation wise.

Please tell me if this was a wise decision.

seems like a good decision from the information provided. your chances of CAUSING damage is extremely low. therefore if uninsured does happen to cause the accident. then you'll have the money you saved to pay out of pocket?






HAHAHAAHA!!! yea right Zaire!

[suesinfl]

Sorry for not responding earlier. But thanks to the responses I’ve decided to bit the bullet and reinstate my C & C. Everyone has given me some food for thought especially the cost of replacing the car or something similar. By the way, I forgot to mention that it is a Chrysler Sebring. KBB replacement is about $3700 through a dealer.
Again thank you for all of your suggestions, I’m trying to rework my budget and was thinking that dropping the C&C would help. But I do have to say, I have been overly cautious driving this weekend knowing that I had dropped the coverage.

[marvholly]

Jul 4, 2014 7:59:00 GMT -5 @singlemominmd said:

Jul 4, 2014 5:35:36 GMT -5 marvholly said:

My auto insurance renews 8/1 so I just went thru this decision. I have a fairly basic 2000 Impala. When I checked its value online it was between $6500 - $7500. I am NOT willing to take that big a hit for some un/under insured yahoo. I did increase my deductible from $500 to $1000, changed companies and saved about $300/yr.

I think you  need to recheck that value.  I have a 2003 Honda Accord (top model) and the value of it isn't that high.  I did a quick calculation on Edmunds (obviously I had to guess) but dealer retail is around $3000. 

Whoops-typo. While my milage is VERY low the Impala is a 2007.

[DVM gone riding]

I cancel collision when the car is worth less than about 3k. I forgot on one car and when the chains broke going over the pass they paid out. It was worth more than I thought! I got about 4k for the car and it was still drivable. I drove it another year before selling it for 2k.

on a 6k+ car I wouldn't lower insurance its just not worth the risk

[ZaireinHD]

Jul 5, 2014 4:52:11 GMT -5 suesinfl said:

Sorry for not responding earlier. But thanks to the responses I’ve decided to bit the bullet and reinstate my C & C. Everyone has given me some food for thought especially the cost of replacing the car or something similar. By the way, I forgot to mention that it is a Chrysler Sebring. KBB replacement is about $3700 through a dealer.
Again thank you for all of your suggestions, I’m trying to rework my budget and was thinking that dropping the C&C would help. But I do have to say, I have been overly cautious driving this weekend knowing that I had dropped the coverage.

it's that cautious driving that would get you in an accident - LOL
but that is your initial reaction from being overly active of dropping the C&C - 1 month or 2 months would pass - I think you would be driving as normally as before saving money.
but understand your point adding it back
best wishes - you have to do what you're most comfortable with - right?