I just saved a bunch of $

[mickeyd]

I just cancelled a couple of items on my auto insurance. On my 15 yo Camry I deleted comprehensive saving $21.45 every 6 months. Also cancelled collision on my '05 Camry, saving $63.95. What will I do with an extra $170 per year?

The rep @ USAA was curious why I was canceling this coverage. I was happy to explain that I no longer wished to toss away good $ on coverage that I could easily self insure. The rep agreed and even congratulated me on making a wise, well thought out, decision. Good CS? I guess so.

 

[Onward]

Congrats. Nice fine-tuning.

 

[ziggy29]

I just cancelled a couple of items on my auto insurance. On my 15 yo Camry I deleted comprehensive saving $21.45 every 6 months. Also cancelled collision on my '05 Camry, saving $63.95. What will I do with an extra $170 per year?

You canceled collision on a 2005 vehicle completely? Wow. I can see doing that on a 15 year old car that probably isn't worth more than a couple grand, but I'd think the '05 is still worth too much to drop collision. Unless you have like 200,000 miles on it already or something...

 

[mickeyd]

You canceled collision on a 2005 vehicle completely? Wow. I can see doing that on a 15 year old car that probably isn't worth more than a couple grand, but I'd think the '05 is still worth too much to drop collision. Unless you have like 200,000 miles on it already or something...

I never keep collision coverage for more than 5 years on a car especially since neither DW or I have ever had an accident that was our fault. The '05 has less than 30K mileage.

 

[Orchidflower]

You have more guts that I do. I keep collision on the car until it's around 10 years old--if I keep it that long which I usually don't. And I have caused accidents (let's all now yell, "woman driver!"). Hey, I was busy and always rushing around the city...sound like a decent excuse?

 

[73ss454]

Also take a look at uninsured motorist. This coverage only helps if you have no health ins of your own or need some income replacement if you're working, otherwise it's useless.

I did away with mine a few years ago.

 

[73ss454]

You have more guts that I do. I keep collision on the car until it's around 10 years old--if I keep it that long which I usually don't. And I have caused accidents (let's all now yell, "woman driver!"). Hey, I was busy and always rushing around the city...sound like a decent excuse?

I won't say a thing about woman drivers, I've had 4 accidents in my life. All 4 were caused by the opposite sex, I'll leave it at that.

 

[Gumby]

Here is an article discussing when to drop collision coverage.

When to Drop Collision, Theft Coverage - WSJ.com

I would only modify their formula in one way -- drop it when the value of your car minus the deductible is less than ten times the premium.

 

[Nords]

The rep agreed and even congratulated me on making a wise, well thought out, decision. Good CS? I guess so.

Really good customer service would be suggesting this idea to us when our cars are 5-7 years old...

But USAA done us good when our kid got her license. They decided that since we had three drivers for two cars, she'd be the "extra occasional driver" and they didn't charge us a penny more for adding her to the policy.

 

[samclem]

Why do people who can afford to pay to have a car fixed buy collision (or comprehensive) insurance? If you financed the car or leased it then it might be required, but otherwise, why do it?

Obviously nobody wants to pay many thousands of dollars to fix a car, but the insurance companies know the odds, too, and charge plenty to let you play the game.

 

[Nords]

Why do people who can afford to pay to have a car fixed buy collision (or comprehensive) insurance? If you financed the car or leased it then it might be required, but otherwise, why do it?

Our neighbors carried collision insurance on their 12-year-old minivan right up until it was rear-ended.

"Actual cash value" was $2800. When he mentioned the insurance settlement, my comment "Wow, you had collision insurance?!?" slipped out before I could slap my hands over my mouth. He looked a little miffed and said "Well, we didn't want to worry about it..."

This is the same guy who runs air-conditioning in an uninsulated Hawaii house and groans about $500/month electric bills. He and his spouse are going to be working for a very long time.

 

[SecondCor521]

I canceled collision on my 1995 Toyota Corolla sometime in 2005.

Later that year I rear-ended someone at about 2 miles per hour. (Apparently doing one's MBA homework while driving to class isn't such a great idea...) Turned out she was the younger sister of a former babysitter of mine, so we handled it in a cordial fashion...

Anyway, caused about $2K of damage to her car, which was covered by my insurance (USAA). Caused about $4K of damage to my car, which I gladly paid out of pocket to have repaired. Still glad I canceled the collision and still glad I paid for the repairs. It's at 145K miles and still going strong.

2Cor521

 

[cho oyu]

Also take a look at uninsured motorist. This coverage only helps if you have no health ins of your own or need some income replacement if you're working, otherwise it's useless.

I did away with mine a few years ago.

Uninsured motorist, if I recall correctly, is split into both property and medical portions.

The medical portion covers everyone in the vehicle; for a situation where passengers are uninsured, this could be of help.

 

[73ss454]

When I spoke to Geico about uninsured motorist they couldn't give me any good reason to keep the coverage. I think only the first $1000 was covered for medical and that was only if you didn't have any coverage. Don't remember exactly but I can't see any reason to have it in my situation.

I think it's for uninsured motorist not uninsured passenger. (heh)

 

[Nords]

When I spoke to Geico about uninsured motorist they couldn't give me any good reason to keep the coverage. I think only the first $1000 was covered for medical and that was only if you didn't have any coverage. Don't remember exactly but I can't see any reason to have it in my situation.
I think it's for uninsured motorist not uninsured passenger. (heh)

I'm getting down in the weeds here, but we have high UM/UIM coverage on our auto policy for our kid. If she's in an accident requiring lifetime disability/care then the UM/UIM coverage should go a long way toward funding it. OTOH medical insurance could end its coverage when she becomes an adult, or leave her with a pre-existing condition that's uninsurable.

Spouse and I are taken care of by the military's Tricare coverage, so we don't see the need for our own UM/UIM insurance. When our kid leaves our policies for her own auto/medical insurance then we'll drop our UM/UIM coverage.

 

[ikonomore]

So you canceled collision to save $64 on a car worth approximately $10k,
sounds like a mistake. So for a $1.20 a week, you'll cover an accident. Cars don't always get totaled. If I was your insurance company I'd be happy you were dropping the coverage too.

 

[TromboneAl]

So you canceled collision to save $64 on a car worth approximately $10k,
sounds like a mistake. So for a $1.20 a week, you'll cover an accident. Cars don't always get totaled. If I was your insurance company I'd be happy you were dropping the coverage too.

If the insurance company didn't make a profit by selling you that insurance for $64, the price would be higher. They have highly educated actuarial guys with big computers to figure that out, so you can be sure that, on average, you'll save money by canceling the insurance.

 

[FUEGO]

So you canceled collision to save $64 on a car worth approximately $10k,
sounds like a mistake. So for a $1.20 a week, you'll cover an accident. Cars don't always get totaled. If I was your insurance company I'd be happy you were dropping the coverage too.

Except the insurance company will say the car is worth $7,000, and then take out your $1000 deductible (you do have the deductibles as high as possible right?). So you are paying $128 a year to insure against a maximum $6000 loss (maybe a little more if you can persuade them that the car is worth what it is actually worth). And then if a claim is made, the loss goes on your insurance record for 3 years, probably costing you another few hundred dollars in higher premiums during that time.

 

[IndependentlyPoor]

This is one of those things that I absorbed from my Dad without realizing it. He only insured against financial calamity: home, health, and liability. Collision insurance only if carrying a car loan, or if replacing it would wreck the family finances.

I do pretty much the same. Pay cash for cars and carry collision only until I can afford replace them.

In 30-some years of driving, I have had three wrecks. One was my fault that I paid for out of my own pocket. Two in rental cars when my guardian angel had prompted me at accept the insurance. I figure that I am way ahead.

 

[saluki9]

If the insurance company didn't make a profit by selling you that insurance for $64, the price would be higher. They have highly educated actuarial guys with big computers to figure that out, so you can be sure that, on average, you'll save money by canceling the insurance.

That's true if you're insuring thousands of cars at a time. However when you bump another car at 3-4 mph like my wife did last fall and cause 4K in damage I at least would feel pretty dumb for canceling collision to save a measly $60

My health insurance company is also profitable, perhaps I should cancel my health insurance too?

 

[Nords]

So you canceled collision to save $64 on a car worth approximately $10k, sounds like a mistake. So for a $1.20 a week, you'll cover an accident. Cars don't always get totaled. If I was your insurance company I'd be happy you were dropping the coverage too.

It's just deciding to assume a risk instead of paying to lay it off.

And of course the savings only accrue if they're actually put into a savings account, not spent.

I'm willing to bet that most people aren't insured for earthquakes or meteorites, either.