Car insurance--collision and comprehensive? Deductibles? Talk me into a decision please!

[melissel]

DH and I are talking about cutting collision and comp. on my eight-year-old minivan. It's in OK shape, but the mileage is still pretty low (I worked from home and we homeschool, so not much driving), so I'll be driving it for several more years at least. The Blue Book value is about $2,300, so it seems silly to keep C&C on it, but it also feels like tempting fate to drop the insurances! DH is convinced that we need it, and that the savings (maybe $30 a month) isn't worth it. I feel like it's a jinx too, but I know realistically that plenty of people drive older cars with only liability coverage and just deal.

We're also looking at raising our deductibles to $1,000. The total savings would be nearly $50 a month, which is a good chunk of change.

He'll go with whatever I push for, I know. But I'm so paranoid that I'm going to drop the insurances and the next day I'll rear-end someone!!!

Do you think the savings is enough to take the chance? The rational part of my brain says I'm being ridiculous. The "just my luck" part is whispering not to do it

WWYD? TIA!

[travlr]

I'm renewing my auto insurance this month and I'm removing the comp/collision on my 2001 SUV. It's just not worth it to pay for the coverage any more.

If I'm reading your description properly, you're looking at paying $360 yr ($30 x 12 months) for about $1300 value ($2,300 less your $1k deductible). I don't think that's worth it. Put the $360 in savings for your next car. 

[JesKace]

I increased our deductible a few years ago on both our home and auto insurance. It saved us a good amount of money on both. I'd rather have to shell out the $1000 if something happens than pay a higher rate for a lower deductible for the "just in case".

As for the collision and comp, I'd say if you could afford to replace the van if you were in an accident and it were a total loss, or you could go without the van until you could replace/fix it then it's safe to cancel extra insurance. I guess it really depends on how much you have in savings and are willing to spend to fix/replace the van if something should happen.

When DH's truck is paid off (this year) we'll keep the collision and comp because the truck will be worth more than we could afford to fix/replace on our own if he were in an accident or if something happened to the truck (it was stolen, or broken into on a jobsite) We could afford the deductible, but probably not much more, so I'd rather the higher insurance each month for that "just in case"

[LifewithSage]

I think it really depends on whether or not you have liquid savings enough to shell out $1,000 if you were to have an accident.  Or, if you have the means to either fix your mini van or purchase a new car if something were to happen.  If you are okay financially and could pay $1000 out or buy a new/used car if something were to happen, then I would drop down to liability and go with a$1000 deductible on your other car.  Although, when we were looking, there was very little difference in savings between a $500 and a $1000 deductible so we went with the $500.

[xmysticprincessx]

Are you sure that your van's value is that low? Did you look up "trade in value" or "retail value"? I doubt that you'd be able to replace your van with a decent running vehicle for $2300 if your van was totaled. 

I'd keep the comp and collision on the van, especially if NJ drivers are bad. DH's car was in an accident over the summer, and it was $4600 in damage. It was to the front end, and the car was still drivable after the accident. The hood, front grill, radiator, headlights, and front bumper had to be replaced, along with other things under the hood. I think he was going 30 mph at the time he rear ended the other car too.

Have you looked for rates from other insurance companies to see if you can get the same coverage cheaper elsewhere?

[melissel]

Originally Posted by xmysticprincessx 

Are you sure that your van's value is that low? Did you look up "trade in value" or "retail value"? I doubt that you'd be able to replace your van with a decent running vehicle for $2300 if your van was totaled....

Have you looked for rates from other insurance companies to see if you can get the same coverage cheaper elsewhere?

Hm, good question, thanks for asking! I never thought of that. I just looked again. $2,300 was the trade-in value. The retail value was $5,800 on the same van in excellent condition, which mine is not (I'd call it "good" condition, given the low mileage but rather beat-up cosmetic condition). Which does the insurance company pay out on, I wonder? That would make a difference to me, for sure.

Yes, these are the best rates we can get. Our driving records are excellent, and this company offers the best rates for good drivers (if we had worse records, we'd be better off somewhere else).

[SubliminalDarkness]

I wouldn't. In July I was rear-ended, and had to pay the deductible up front to get the car repaired, though it was refunded to me about a month later since the accident was not my fault and the other driver was insured. But had I had to pony up $1000 out of the blue, that would have put us in a very bad spot.

And then in this past month our same vehicle was involved in ANOTHER collision that was a hit and run and we, again, had to pay the deductible, but this time it won't be getting reimbursed. Thank goodness our deductible is only $100! 

I'm a big fan of low deductibles unless you have significant savings to cover higher ones. 

[bodhitree]

Originally Posted by melissel 

Originally Posted by xmysticprincessx 

Are you sure that your van's value is that low? Did you look up "trade in value" or "retail value"? I doubt that you'd be able to replace your van with a decent running vehicle for $2300 if your van was totaled....

Have you looked for rates from other insurance companies to see if you can get the same coverage cheaper elsewhere?

Hm, good question, thanks for asking! I never thought of that. I just looked again. $2,300 was the trade-in value. The retail value was $5,800 on the same van in excellent condition, which mine is not (I'd call it "good" condition, given the low mileage but rather beat-up cosmetic condition). Which does the insurance company pay out on, I wonder? That would make a difference to me, for sure.

Yes, these are the best rates we can get. Our driving records are excellent, and this company offers the best rates for good drivers (if we had worse records, we'd be better off somewhere else).

I believe the insurance company pays out on retail value (adjusted for the condition of the vehicle).

[LaughingHyena]

It's also worth thinking about what you keep in the van that might need replacing if you were in an accident. For us there is always 2 car seats and a puschair which would need replacing. Not huge in the grand scheme of things but wotht remembering.

[xmysticprincessx]

Originally Posted by melissel 

Hm, good question, thanks for asking! I never thought of that. I just looked again. $2,300 was the trade-in value. The retail value was $5,800 on the same van in excellent condition, which mine is not (I'd call it "good" condition, given the low mileage but rather beat-up cosmetic condition). Which does the insurance company pay out on, I wonder? That would make a difference to me, for sure.

Yes, these are the best rates we can get. Our driving records are excellent, and this company offers the best rates for good drivers (if we had worse records, we'd be better off somewhere else).

I'm almost positive that insurance companies go by retail value, since that it what it would cost you to replace your vehicle if it were totaled. 

A few years ago, my mom had an 11 year old Crown Vic with 260k on it that was totaled (damage was worth more than the car, but it was still drivable but the airbags deployed). The insurance company gave her somewhere around $2600 for it, plus they let her keep the car (which we sold on craigslist for a few hundred dollars). Had she traded it in (before the accident), she probably would have gotten $500, if that. (To put insurance value into perspective.)

So your van is probably worth a little over $5,000. I assume that its been a reliable vehicle for you and that you've kept up on the maintenance. I'd definitely keep the full coverage on it.