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Discussion Starter #1
According to KBB.com, my 2006 Subaru Tribeca has a trade-in value of around $6,875. Should I be considering dropping all but the required liability insurance coverage? To put KBB.com's value assessment into perspective, it estimated my 2008 Buick Enclave's trade-in value at about $11,565.
 

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On a percentage basis, how much would your annual coverage cost decrease (which I myself would use as a key determining factor) ??
 

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Discussion Starter #3
The insurance bill on my Tribeca would be reduced by 38.75% by dropping collision and comprehensive coverage.
 

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Comprehensive is cheap, sometimes as low as $50 on an old car... up to you if someone hits your parked car, you'll be covered...

I drop collision after 9-10 years...
 

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DVelasco68 said:
Comprehensive is cheap, sometimes as low as $50 on an old car... up to you if someone hits your parked car, you'll be covered...

I drop collision after 9-10 years...
. Looks like I dropped collision at 12 yrs, too late I suppose. That' same total of 16 yrs with nary a claim. The $100 deductible comp I kept because as you mentioned, it's $40 per 6 mos. Cannot control theft, hit and run, deer crossing, etc.

Nobody insures when they can spread the risk, like say a rental car co. Of someone who owns a fleet of trucks, they simply insure angaist catastrophes, not ordinary occurrences. Gosh I hate how badly Apple spell checks, horrible :angryfire:
 

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GoldEnclave said:
The insurance bill on my Tribeca would be reduced by 38.75% by dropping collision and comprehensive coverage.
. Here's where the absolute amount would be more useful than a percentage. My gym raised my rates by 21.1%. Outrageous, right? For real, it went to $9.99 a month, used to be $8.25. Some would argue that $1.74/mo. Is not a big deal....
 

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Discussion Starter #7
I would save about $430 per year without collision and comprehensive on my Tribeca.
 

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GoldEnclave said:
I would save about $430 per year without collision and comprehensive on my Tribeca.
As john 070 already indicated, I would recommend not dropping comprehensive coverage. Broken glass, weather-related issues, deer hits, etc. would not be covered.
 

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Discussion Starter #9
If I were to drop only collision, the savings would be less than $300 per year. There seems to still be too much value in the car to take chances to same so little.
 

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There are various factors why you would want to drop comprehensive - the most obvious are what the replacement value would be if you totalled your car.

For me, I drop collision as soon as the replacement value is less than $10,000 - no matter how much it costs. That is a much higher threshold than many, and is typically a little more than 12 times what you would pay annually as a premium. I drop compreshensive soon after, or usually at the same time.

My reasons are as follows:

1. I really hate paying insurance.
2. I have only had one accident, when I was 16 years old, and have not had a claim that was my fault since then ... over 35 years. (note "not my fault")
3. If you are a good driver, and never had a claim, or seldom have a claim, your threshold should be higher. Note that if it is someone elses fault in an accident, the OTHER driver will pay to have your car repaired - so comprehensive/collision insurance is only if the fault is yours.
4. Are you in love with the car? If you really don't care if the car is totalled, or damaged and drivable, then again, your threshold will be higher.

You pretty much have to be your own actuary and determine if it is cost effective to drop insurance for your specifics. e.g. for most people if they NEVER had to pay insurance for their entire lives, they would be ahead of the game. For others, they get some value from their insurance, and get more than they pay into the system. The latter group is less common - the majority of us pay more into insurance than they get back, and that is why insurance companies exist - to make money. You pretty much pay for collision to "insure" against that one time catastrophic loss amount.
 

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Drop it when you stop caring about how the car looks and doesn't worry about resale value anymore. Chances are, if you don't care about it, nobody would want it either.
 

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johnny772084 said:
Drop it when you stop caring about how the car looks and doesn't worry about resale value anymore. Chances are, if you don't care about it, nobody would want it either.
That's actually not true, some of most stolen vehicles are not desirable vehicles, but the value of their parts exceed the value of the car as a whole.
 

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EricInPDX said:
There are various factors why you would want to drop comprehensive - the most obvious are what the replacement value would be if you totalled your car.

For me, I drop collision as soon as the replacement value is less than $10,000 - no matter how much it costs. That is a much higher threshold than many, and is typically a little more than 12 times what you would pay annually as a premium. I drop compreshensive soon after, or usually at the same time.

My reasons are as follows:

1. I really hate paying insurance.
2. I have only had one accident, when I was 16 years old, and have not had a claim that was my fault since then ... over 35 years. (note "not my fault")
3. If you are a good driver, and never had a claim, or seldom have a claim, your threshold should be higher. Note that if it is someone elses fault in an accident, the OTHER driver will pay to have your car repaired - so comprehensive/collision insurance is only if the fault is yours.
4. Are you in love with the car? If you really don't care if the car is totalled, or damaged and drivable, then again, your threshold will be higher.

You pretty much have to be your own actuary and determine if it is cost effective to drop insurance for your specifics. e.g. for most people if they NEVER had to pay insurance for their entire lives, they would be ahead of the game. For others, they get some value from their insurance, and get more than they pay into the system. The latter group is less common - the majority of us pay more into insurance than they get back, and that is why insurance companies exist - to make money. You pretty much pay for collision to "insure" against that one time catastrophic loss amount.
Many people will look back, say you're 40, and you've been driving for 24 years. A fair amount of people will have NEVER made a claim in 24 yrs. That's a lot of money lining the pockets of insurance executives (boats, cars, watches, apartments, etc.) But what can you do when you cannot effectively spread out your risk, and if you borrow or lease, you don't have a choice....
 

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Discussion Starter #14
Between four rear-endings, one deer strike, two cracked windshields due to flying road debris, a few hit-and-runs, two break-ins, and one snow related minor accident, my wife and I seem to file a claim every few years. With the exception of one incident in which my wife struck a road sign when our Olds Intrigue failed to negotiate a slow speed turn on a snowy road, the incidents have not been our fault. Luckily, this has not affected our insurance rates much.

Those of you who've never filed a claim are very lucky.
 

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GoldEnclave said:
Between four rear-endings, one deer strike, two cracked windshields due to flying road debris, a few hit-and-runs, two break-ins, and one snow related minor accident, my wife and I seem to file a claim every few years. With the exception of one incident in which my wife struck a road sign when our Olds Intrigue failed to negotiate a slow speed turn on a snowy road, the incidents have not been our fault. Luckily, this has not affected our insurance rates much.

Those of you who've never filed a claim are very lucky.
This is a case where the insured's interests are aligned with the insurance co. Why wouldn't they be...you make a claim, you become undesirable and your premiums go up. So you be extra careful, exactly what they would hope, and do your best to avoid loss.

Interesting how it doesn't work that way with health insurance (your interests couldn't be more at odds with the insurance co.), and same with an annuity. Imagine, the insurance co. charges you a mortality risk expense, in case you live too long. They do not want you to live longer than their actuaries say, and even bet against you with a mortality risk expense. Imagine that? :thumb:
 

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I would say when you have enough expendable cash lying around to cover what could be a costly repair.

Paying insurance companies annually, what I also consider to be too much, is still a far cry from what extensive body work could set you back in one shocking shot.

Guess it boils down to how much you like your vehicle to look good ;D
 

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I never ever drop comprehensively It is realatively cheap (check you policy) and if your car is ever stolen or a rock breaks your windshield you will regret not having it.
 

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kenthurgood said:
I would say when you have enough expendable cash lying around to cover what could be a costly repair.

Paying insurance companies annually, what I also consider to be too much, is still a far cry from what extensive body work could set you back in one shocking shot.

Guess it boils down to how much you like your vehicle to look good ;D
I agree with the above. Accidents are called accidents because you don't know when they will happen. I would keep it till you car is worth less then $4k
 

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I thought about dropping to plpd on my car a couple years ago, but I think it only dropped it like $50 for six months. Didn't seem worth the risk.
 

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Grimm said:
I thought about dropping to plpd on my car a couple years ago, but I think it only dropped it like $50 for six months. Didn't seem worth the risk.
Same with us; '05 Escape with 218k on it. The difference in cost was minimal so we still have full coverage on it.
 
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