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10 year old Honda Pilot full coverage or liability?
Old 09-29-2016, 10:10 AM   #1
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10 year old Honda Pilot full coverage or liability?

My 10 year old Honda Pilot has now 72,000 miles on it. I work from home, so do not drive much for 4 years. I just checked KBB using condition 'good', and see a trade-in value $6000.

My Geico insurance quoted with $200 savings a year, if I drop full coverage down to liability. DW says that if we keep it for 5 more years, we will pay total extra $1000, for $6000 asset.

So, would you drop full coverage and go liability at this value? Or wait a couple of years since the savings is low value?
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Old 09-29-2016, 10:26 AM   #2
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would this impact your umbrella coverage? We have to keep full coverage on everything as an umbrella minimum (I think)

$200 is chump change compared to a catastrophic event
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Old 09-29-2016, 10:48 AM   #3
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One variable is state laws. In Michigan, with no fault insurance, if some clown smashes into me the maximum I can get is $500, unless I have collision coverage on my car.
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Old 09-29-2016, 11:14 AM   #4
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I took collision off mine after about 5 years, but a couple years ago totaled it in a snowstorm, so I came out behind, but that's the first car I've totaled that was my fault. If I had really been thinking about it, I should've put it back on over the winters. Since you don't drive much, I'd probably drop it if the $6K isn't a major deal to you, but it does depend on the weather and traffic you do drive in, and the state laws as travelover says.


You don't need collision for an umbrella policy. They only worry about liability insurance for that.
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Old 09-29-2016, 11:59 AM   #5
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Our Honda Pilot is 13 years years old with a $4,000 value (more mileage).

The collision is $104 per year and makes DW happy so I keep it on.

In our state the collision covers uninsured motorists as well except I would have to pay the deductible.

No need for collision for our umbrella but do need high liability coverages.
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Old 09-29-2016, 12:36 PM   #6
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I don't take it off until the value of the car is at 2k or less.
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Old 09-29-2016, 12:49 PM   #7
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We've had the same debate over my 11 year old Toyota Highlander Hybrid. I think we're going to drop the collision, but keep the comprehensive (theft).

You don't have to have Comp or collision for umbrella - at least in my state. Umbrella is for liability. My husbands 21 year old truck does not have comp or collision and we have a $2M umbrella policy.
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Old 09-29-2016, 01:17 PM   #8
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The collision still seems like a good buy based on the value and costs you cited.

The question boils down to: how much are you willing to pay for a $6000 risk?

For me, I think the insurance would need to be 1/10 of the value before I would think of dropping collision.

The good news is: when we drive fewer miles and have good driving records, we are cheap to insure!

M
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Old 09-29-2016, 01:29 PM   #9
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The collision still seems like a good buy based on the value and costs you cited.

The question boils down to: how much are you willing to pay for a $6000 risk?

M
For me, once the value gets below about $8K, then I will drop it. Also, my umbrella coverage is tied to the LIABILITY portion of the insurance...it has nothing to do with the comp/collision.
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Old 09-29-2016, 01:48 PM   #10
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Thanks for all the replies. I called Geico for my umbrella insurance. Looks like it only requires liability for me.

Since it is cheap enough to have comprehensive and collision, we will just keep them for now.
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Old 09-29-2016, 01:58 PM   #11
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Also be aware that if you make a claim to your insurance they might increase your premium...

I had 2 at fault accidents in the last 25 years... the problem is they were 1 year apart... my first one was very minor... maybe a few hundred bucks to the other person... my damage less than deductible....

Second was when I totaled out my car... got something like $10K for the car.... but, my insurance rose by maybe $1500 per year....


Also know that you get the price less your deductible... I have $1K deductible... so in OP case I would only get $5K...


I would also look at autotrader for prices... it seemed that is what they used and then took an 8% discount.... it was higher than what KBB estimated...
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Old 09-29-2016, 02:20 PM   #12
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On my older cars (collectables) that I don't drive much, I only keep liability. I keep full coverage with high deductibles on my daily drivers which helps keep the rates a bit lower.

As a side note I just got my auto insurance renewal for my daily drivers. (No wrecks, no tickets or claims) It still when up over 20% this term.

Hard to believe that the current US inflation rate is ~1.1% when I look at my medical, home owners and auto insurance rate increases.
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Old 09-29-2016, 03:51 PM   #13
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Originally Posted by travelover View Post
One variable is state laws. In Michigan, with no fault insurance, if some clown smashes into me the maximum I can get is $500, unless I have collision coverage on my car.
There is that case, and here in WV a common practice among people short on funds is to get one or two month's insurance coverage just to get the car tags (need proof of insurance for that) then stop the payments and drive uninsured. Hey, if you don't have any assets to protect, why buy insurance?

So we keep the collision insurance for as long as we own the vehicle.
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Old 09-29-2016, 04:12 PM   #14
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Originally Posted by Big_Hitter View Post
would this impact your umbrella coverage? We have to keep full coverage on everything as an umbrella minimum (I think)

$200 is chump change compared to a catastrophic event
Yes, but only liability insurance, not collision which is what the $200 relates to.
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Old 09-29-2016, 04:22 PM   #15
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With a $6k trade-in value, I'd hang on to Comp and Collision. At some point, I'd drop collision only and stick with Comp alone. Comp is usually a lot cheaper and covers you for things like theft and glass (windshield). With my previous car, I dropped Collision the last few years and stuck with Comp.


And, as others wrote, neither has anything to do with umbrella, a liability coverage.
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Old 09-29-2016, 04:32 PM   #16
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I do not carry comp and collision on my vehicles, preferring to self insure. If I can replace them, no sweat, I don't pay for the coverage. If my emergency fund/ready cash supply were lower, I'd be inclined to have the coverage.
Pro-tip--never tell anyone else to drop their comp and collision. Odds are good that they will run into a deer within a month and be mad at you for suggesting it.
I do carry lots of liability, though, as required by our umbrella coverage.
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Old 09-29-2016, 10:41 PM   #17
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You could always raise your deductible which would save on the premium to save some of the "$200" .
If you don't hit anything, you will have saved.
If you hit something, you will just get less insurance, but more than not having collision.

I'd keep deductible no matter what as windshield get cracked easily, along with keying hoodlums.
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Old 09-30-2016, 04:35 AM   #18
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Years ago, I dropped the collision on a 9 year old vehicle. I was rear ended (drunk driver with min. coverage) and only given 1/2 of what repairs to my vehicle cost. My insurance co. would have gone after the other co. if I had full coverage. (I probably should have taken the co. to small claims court, but was young and intimidated.)

Since then, I have always kept full coverage, even on older vehicles.

Also, we now only have one vehicle and travel, renting cars on trips. Need full coverage to shut up the rental guys pushing their coverage at check in.
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Old 09-30-2016, 05:44 AM   #19
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Most experts say to drop comp & collision when the value of the vehicle gets to $4500.

My problem is that I have an 8 year old car worth 10K and a 13 year old diesel pickup worth $12K, and their values on the used car retail market remains very high. We're paying much more than $100 or so per year for coverage.
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Old 09-30-2016, 07:28 AM   #20
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I tend to keep comprehensive even though drop collision when value gets to $6K or so. In the last five years, I've had no collision but three comprehensive claims: two glass related, one deer. Seems to have the best payback.
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