Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
I just saved a bunch of $
Old 03-24-2010, 04:39 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,880
I just saved a bunch of $

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.
__________________

__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-24-2010, 04:53 PM   #2
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,664
Congrats. Nice fine-tuning.
__________________

__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 03-24-2010, 04:55 PM   #3
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by mickeyd View Post
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...
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 03-24-2010, 05:01 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,880
Quote:
Originally Posted by ziggy29 View Post
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.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 03-24-2010, 05:43 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Mar 2007
Posts: 3,323
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?
__________________
Please consider adopting a rescue animal. So very many need a furr-ever home and someone to love them! And if we all spay/neuter our pets there won't be an overpopulation to put to death.
Orchidflower is offline   Reply With Quote
Old 03-24-2010, 05:59 PM   #6
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
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 is offline   Reply With Quote
Old 03-24-2010, 06:01 PM   #7
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
Quote:
Originally Posted by Orchidflower View Post
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.
__________________
73ss454 is offline   Reply With Quote
Old 03-24-2010, 06:53 PM   #8
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 10,137
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.
__________________
Living an analog life in the Digital Age.
Gumby is offline   Reply With Quote
Old 03-24-2010, 09:05 PM   #9
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by mickeyd View Post
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.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 03-24-2010, 10:57 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
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.
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is online now   Reply With Quote
Old 03-24-2010, 11:12 PM   #11
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by samclem View Post
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.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 03-24-2010, 11:23 PM   #12
Thinks s/he gets paid by the post
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 2,401
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
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is online now   Reply With Quote
Old 03-25-2010, 03:00 AM   #13
Recycles dryer sheets
 
Join Date: Apr 2007
Posts: 113
Quote:
Originally Posted by 73ss454 View Post
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.
__________________
cho oyu is offline   Reply With Quote
Old 03-25-2010, 07:19 AM   #14
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,378
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)
__________________
73ss454 is offline   Reply With Quote
Old 03-25-2010, 01:31 PM   #15
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by 73ss454 View Post
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.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 03-25-2010, 07:19 PM   #16
Recycles dryer sheets
 
Join Date: Feb 2007
Posts: 94
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.
__________________
ikonomore is offline   Reply With Quote
Old 03-25-2010, 11:19 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,197
Quote:
Originally Posted by ikonomore View Post
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.
__________________
Al
TromboneAl is offline   Reply With Quote
Old 03-26-2010, 09:37 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,526
Quote:
Originally Posted by ikonomore View Post
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.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Old 03-26-2010, 09:58 AM   #19
Thinks s/he gets paid by the post
IndependentlyPoor's Avatar
 
Join Date: Jul 2009
Location: Austin
Posts: 1,142
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.
__________________
IndependentlyPoor is offline   Reply With Quote
Old 03-26-2010, 10:29 AM   #20
Thinks s/he gets paid by the post
saluki9's Avatar
 
Join Date: Feb 2005
Posts: 2,032
Quote:
Originally Posted by TromboneAl View Post
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?
__________________

__________________
saluki9 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
A bunch of birds by any other name mickeyd Other topics 4 06-09-2008 06:24 PM
Found a Bunch of Money in a Suitcase! JustMeUC Other topics 2 10-09-2007 09:55 AM
Can this computer be saved? Sandy Other topics 13 08-31-2007 08:54 PM
How do you decide you've saved enough? spitting_llama Young Dreamers 25 07-13-2007 03:28 PM
Saved a Few Bucks Bob_Smith FIRE and Money 25 12-07-2006 06:06 PM

 

 
All times are GMT -6. The time now is 05:56 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.