Removing collision/comp

[tuixiu]

I've got a 10 year old Toyota Corolla that I just removed collision/comp from.

Smart move?

Thanks

[REWahoo]

Actually, it would have probably been smarter to remove it 3-4 years ago. But like you, I have a 10 year-old vehicle that I just recently dropped the coverage on. Somehow I felt as if I was "giving up" on my truck by not having the collision and comp. Makes no sense, but that's how it was...

[crazy connie]

YES especially when you consider how little the payout would be and assuming you can afford to replace it if need be.

[brewer12345]

I think so. I usually drop comp/collision when a total loss of the vehicle is less than I would be upset about a daily fluctuation in my portfolio. I will probably drop my comp & collision on the 2003 Subaru I drive to work every day, as a 5 year old car with 135k on it probably isn't worth much after the $1k deductible.

[ziggy29]

Quote:

Originally Posted by tiuxiu I've got a 10 year old Toyota Corolla that I just removed collision/comp from. Smart move?

Probably, but what was the premium and the deductible, and what would it cost to replace this vehicle with one that's comparable?

[cute fuzzy bunny]

Ten years is pretty up there. On our 5-7 year old low mileage vehicles, I've carried collision and comp with a 2500 deductible because the premiums were peanuts and the deductible is waived on glass damage. One rock off the windshield and that'd pay back the c&c premiums for about 5 years. I wouldnt get a big check if the car was totaled or burned up, but I'd get something to get me started on paying for a new car. I think at about 10 years I'd give up on it though.

[tuixiu]

Dang it Ziggy29 (played guitar) I can't answer that right now since I just dropped it so my USAA online shows the new rate instead of the old one. The car itself is probably only worth a little more than $3k.

[tuixiu]

Also thanks all for kind replies, good feeling having the blessing of he who walks behind the posts.

[tuixiu]

Ooh found it.

Comp = 35
Collision = 52

I didn't think about the glass thing, if I keep the comp it includes full glass coverage. I'm hoping to keep it running another 4-5 years, perhaps I should add back in the comp at highest deduct for the glass coverage?

[73ss454]

I have a 10 year old Taurus but the comp and collision is only $6.00 every 6 months so I keep it.

[jazz4cash]

High cost insurance area/ three youthful drivers/ can't afford to own any autos valuable enough to justify comp and collision. Otherwise at 6 yrs or so, Im done with these coverages except for my hobby car which is 20yrs old.

[W2R]

I have been coasting on minimum liability only, ever since my 2000 Solara was brand new (probably LBYM to a very unwise level, and not advisable for most people). No collision or comp.

Due to my recent windfall, I asked my insurance agent what would be advisable given my changed circumstances. After discussing with her I arranged to add as much liability for my car as they would sell me, and to up the coverage on my house and contents. But as far as damage to my own car goes, I'd just as soon self-insure.

[OAG]

A good move and, as already has been said, maybe you should have done it earlier. At this age almost any accident that even damages the car lightly would have resulted in the insurance adjuster "totaling" it and paying you only the current "value" (which is probably pretty low by now). If you have a worry about liability maybe a good Umbrella policy should be considered - they are very reasonable and they also usually require the the auto liability level be increased to a level of about $300K which is usually very reasonable in cost.

[W2R]

Quote:

Originally Posted by R Wood A good move and, as already has been said, maybe you should have done it earlier. At this age almost any accident that even damages the car lightly would have resulted in the insurance adjuster "totaling" it and paying you only the current "value" (which is probably pretty low by now). If you have a worry about liability maybe a good Umbrella policy should be considered - they are very reasonable and they also usually require the the auto liability level be increased to a level of about $300K which is usually very reasonable in cost.

You are so lucky to be able to get an umbrella policy! Due to Katrina, Allstate and other major insurers won't sell them here at any price despite no claims and near perfect credit and payment history on my part. This is one more reason why I want to move north for ER.

[headingout]

I recently dropped collision (not comprehensive) on a 10-year old car insured with USAA, so I think it was a good move. Even though it has a teenage driver, I ran the numbers, and it didn't make sense. Premium was nearly $500/year. Car was worth about $3000 after deductible. So in the 5 years it will take him to finish high school/college I'm paying for about any 83% probability he would total the car! He's a good driver -- could total, but no way it's an 83% probability! I kept comprehensive because USAA requires it to get towing and labor, and we seem to use that every few years.

P.S. USAA doesn't drop the deductible on glass coverage in my experience. We actually just lost a windshield, and definitely had to pay the deductible. But they have a great program where SafeLite comes right to your house or work, and the price was very reasonable: beat a local shop by $100.

[RedHawk]

Quote:

This is one more reason why I want to move north for ER.

Yes insurance is much cheaper just about anywhere else. My family's insurance for auto dropped by about 1/2 after moving out of the New Orleans area.

[Patrick]

Quote:

Originally Posted by Want2retire You are so lucky to be able to get an umbrella policy! Due to Katrina, Allstate and other major insurers won't sell them here at any price despite no claims and near perfect credit and payment history on my part. This is one more reason why I want to move north for ER.

Move to FL! You can get an umbrella, there's no state income tax, and windshield replacement is required in all policies by the state.

[OAG]

Want2Retire: I did not know you could not get a Umbrella in LA - Sounds strange but I do not doubt you. The last one I got was with USAA and they did require me to raise the Liability on the Car and the Home (In Florida) to $300K in conjunction with the Umbrella (which BTW was $1MM at $150 a year premium). One of the conditions of the umbrella is to maintain that level of liability on the car and home or no umbrella.

hedingout: The last time my DW took out the neighbors mailbox USAA did pay for the replacement Windshield with $0 deductable but, it has been a long time since she did that. More recently I followed some kind of gravel truck and got the windshield pitted and USAA did suggest Safelite and if I used them they would pay all the costs as long as safelite said they could repair it - which the did.

[W2R]

Quote:

Originally Posted by R Wood Want2Retire: I did not know you could not get a Umbrella in LA - Sounds strange but I do not doubt you. The last one I got was with USAA and they did require me to raise the Liability on the Car and the Home (In Florida) to $300K in conjunction with the Umbrella (which BTW was $1MM at $150 a year premium). One of the conditions of the umbrella is to maintain that level of liability on the car and home or no umbrella.

Yes, I would have assumed that to be the case, to tell you the truth. I don't suppose anybody want an umbrella policy if they weren't maxed out on liability on their normal policies. Allstate did allow me to increase my liability on my homeowners and car policies, and I made sure I got the maximum they would give me on those. It's not just me, or just my coverage, or just Allstate. The reason is that I am living in New Orleans.

Things are getting better, though. For months and months we didn't even have mail service down here, flooded area or not.

[RedHawk]

I would think that insurance companies would offer umbrella policies in New Orleans. May be at a much higher price than normal, but even New Orleans has successful businesspeople with significant assets that need protection.

I also don't understand the connection between Katrina and umbrella insurance. Umbrella insurance only covers liability (correct me if I am wrong) so what liability is created by flooded homes?