At what point do you drop collision on your car?

[lawren2 Malibu Beach Barbie & A Super Moderator Find all posts View Profile Close lawren2]

I have probably carried total coverage on my 2002 Accord V6XLE far longer than is advised. Kelly has it's value at 20% of what I initially paid for it. I tend to keep my cars ( the good, dependable ones) for a long time. They are physically maintained on a regular basis. Where I live drivers are SO aggressive. Would liability give me enough coverage?

Love this one even 10 years later and 105k miles.

What do all of do about car insurance?

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

I generally drop collision as soon as I own the car free and clear. My philosophy on insurance is that it's basically a losing game in that the premium you pay has to be greater than the risk-adjusted probability of a loss. Accordingly I insure myself only for situations that would be financially catastrophic were they to occur. And losing a vehicle would be painful, but not catastrophic.

[lawren2 Malibu Beach Barbie & A Super Moderator Find all posts View Profile Close lawren2]

I generally drop collision as soon as I own the car free and clear. My philosophy on insurance is that it's basically a losing game in that the premium you pay has to be greater than the risk-adjusted probability of a loss. Accordingly I insure myself only for situations that would be financially catastrophic were they to occur. And losing a vehicle would be painful, but not catastrophic.

That would have been the day I drove it off the lot but I get your drift.

[wackymother Senior Member Find all posts View Profile Close wackymother]

As our cars age, we always think we're going to save serious bucks by dropping collision...but then when we check with the insurance company, it turns out that the collision doesn't actually cost that much. How much would you save?

The other element for you and me, Lawren, is that used cars in our area are expensive, especially small ones with low mileage. So what would the replacement cost be for your well-maintained, reliable small car really be around here?

[bigfrank Administrator Find all posts View Profile Close bigfrank]

Did you take the mechanical break down insurance. If you did leave it alone if you like the car since they will fix anything major the car can last over 10 years under most policy's.
If you can replace the car with the same one at that time you want to drop the insurance and factor in your deductible then that might be around the time to drop it. In other words If you are going to save $1000 plus your deductible of lets say $500 and your car at that time costs $3000 to replace then keep the insurance. If your car cost $2000 at that time then flip a coin. If your car would cost a $1000 to replace well then it is time to get rid of the car and the insurance. Only kidding if you get rid of the car you will not need the insurance.

[MargeS Senior Member Find all posts View Profile Close MargeS]

We have been thinking about the same thing. The car is worth so much more to us than the true value were anything to happen...

[ArtsieAng Super Moderator Find all posts View Profile Close ArtsieAng]

I didn't have a clue when you should drop collision on a car, so I asked my DH. He said "I don't know, when it gets real old." Lol. Sorry Lawren, no help here.

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

We have been thinking about the same thing. The car is worth so much more to us than the true value were anything to happen...

Yup,
Lawren, the cars' book value is what??? 3,000-4,000?
You have a deductible of $1,000?
It cost you $$$
I think it is time to drop it now. (so does DH)

My car is 4 years old and still has a book value of 10K, we have collision.
When it gets to be 6-7 years old, we will drop it.

[1950bing Senior Member Find all posts View Profile Close 1950bing]

I drop it when I figure it won't be a financial hardship to replace it if I lost it. I keep it for another four years or so unless it starts to cost to keep. Also, I never buy new.

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

I generally drop collision as soon as I own the car free and clear. My philosophy on insurance is that it's basically a losing game in that the premium you pay has to be greater than the risk-adjusted probability of a loss. Accordingly I insure myself only for situations that would be financially catastrophic were they to occur. And losing a vehicle would be painful, but not catastrophic.

That would have been the day I drove it off the lot but I get your drift.

For me that's almost always the day I drive it off the lot as well.

[bellesgirl Senior Member Find all posts View Profile Close bellesgirl]

The rule of thumb I have heard is, if you are paying more than 10% of the value of the car, it is time to drop the collision. So, based on a $3000 value, if you are paying more than $300 a year for the coverage, it is probably a bad bet. But it comes down to a comfort level and how much that is worth to you. Of course, you never drop liability and sometimes it does not pay to drop comprehensive because that usually doesn't cost much and has a lower deductible.

[StressCadet Senior Member Find all posts View Profile Close StressCadet]

Some people have a mental line drawn about value vs risk. I usually hear well, if it's value is less than $5,000...drop the collision. However, you have to factor in your personal situation. Some people can take a $5,000 hit, some can't.

I know when my kid totaled my 2000 Toyota Camry in 2009...I still had collision and was paid a very nice sum as it had low miles as well.

We replaced that with a little truck for him and are getting ready to spend the rest on another car for kid 2 very soon. So, I got replacement and then some in two purchases. There was value for me and my personal situation. Neither of the these cars will carry collision..kid 1 can't afford it after the accident. Ouch!

I also agree with Wacky...by this point, sometimes your collision cost is not as much as it used to be. Just weigh your personal situation vs cost of carrying the collision. If you can afford the hit, drop the collision.

[dcwojo Senior Member Find all posts View Profile Close dcwojo]

I drop the collision insurance when the value of the vehicle drops below $5000. At that point I can pay out of pocket without much inconvenience.

[gandalf252002 Senior Member Find all posts View Profile Close gandalf252002]

My '97 Sunfire has NEVER had collision on it and it will probably be going to the grave yard soon (probably in the next year or two). It's been my first real car and she has been very good to me. I paid only $2500 and in 4 years have put maybe $3000 into it.

My next car however will probably be a little newer and will probably be in the $10,000 price range (I would never by brand new, due to depreciation) but will most likely get collision until the value is under $5000.

[davhu1 Senior Member Find all posts View Profile Close davhu1]

For new car, around 7 years or when the extended warranty runs out. We did not bother getting for a used car that was 7 years old.

My '97 Sunfire has NEVER had collision on it and it will probably be going to the grave yard soon (probably in the next year or two).

We have a '98 Sunfire with 156,000 miles. Only major things replaced were water pump and alternator (a few hundred each). I thought we may have to junk it soon when the transmission leaked oil last year and they wanted close to $2,000 for fix. Decided to run it until it dies, but found a transmission oil with leak sealer and seemed to stopped the leak.