Bocatrip

As we all know our cars are a depreciating asset. As they age, eventually (unless a classic from the onset) they will all be pretty much depreciated out to a very small sum of 3-5 Thousand.. At what point must we make the decision it is no longer cost effective to keep collision on our insurance policy as it is costing hundreds each year and our car has little value and less after the deductable? Regardless how much I love my 01 LS430 which is in spectacular condition....bottom line it is still an "Old Car" and if totalled would not bring me much more than 5 or even 6K? I am a careful driver with no accidents for almost my entire lifetime of driving.. Should I be spending Hundreds a year to preserve such a small value? I have a $500 deductable. What do you guys think?

jimbosr1

i have my 93 sc400 with full coverage which adds $200 a year.if stolen or recked by a uninsured driver i will receive some coverage,without it you have nothing.personal call.
there isnt a right answer imo.

MiserLS400

I had full coverage on my LS400 and was in an accident. The other driver flew out of a parking lot and hit me in the front driver's side wheel. The vehicle was able to limp home even though she was deemed totalled. His insurance valued the car at $5000-6000. My car was in good+ condition with 227000 miles on her. I had all the receipts for the work performed over the last two years and was able to work with my insurance, AAA. The claims adjusted determined that even though there was some clear coat issues right above the windshield and a few minor imperfections, the parts list of replaced items adjusted the value up to ~$8700.

The couple hundred more for comprehensive worked well for my replacement value. I was not able to locate another LS400 in as good shape as mine was at the time and ended up getting an :LS430.

I was able to use the auction company's bid on my totalled car and sold it to them for $2100 after paying AAA $300-ish to buy it back.

Other Guy's insurance - $5000-6000 value on totalled car. (3000-4000 for car then dispose through their auction company +2100).

My insurance subrogating - $8700 - 300 to buy it back + 2100(sold to other insurance company auction) = 10,800 for the car.

If the car is in great condition, I would keep comprehensive.

~miser

Bocatrip

FYI, I have never gone without collision on any car I have owned, but recently was reading that it might not be cost effective. Bottom line is the owner's comfort zone.

Bocatrip

Good Info. May I ask approximately at what date did this accident occur? How long ago?

Junglequac

While certainly a depreciating asset, with parts prices being what they are on these cars, I would be mighty reticent to drop down all the way to liability only. Granted 2004-2006's do fetch a bit more money and with mine sitting just over 90,000 miles, similar Ultra Luxury 430's I have seen at dealers are still listed for close to $20,000.

And after having lived in Florida for 10 years, I would be that much more reticent to drop coverage considering how many uninsured drivers there are down there.

BradTank

I'm generally of the opinion people "over insure" things. For me anyway, I tend to only insure if losing something would be catastrophic to me financially. Like say fire insurance if my house burned down. And I usually carry a high deductible because I feel like just dealing with insurance companies is such a pain I'd rather take the cost savings in my premiums then run anything through them and make them cough it up.

If you have a car that's truly worth $3-$5k, that's just so little money in the scheme of things for most people. It's a tough case to make that you should insure much above the minimum. For many people, a service visit at a dealership can easily get to that level. A vehicle worth $10k+ though is a different ballgame.

What are the quotes for you to just have the minimum insurance vs the coverage you have now? If the difference was over $500 a year, I would heavily lean towards just getting the minimum and taking my chances. If the difference is under $200 a year, I would probably stay with it.

My bigger concern is vandalism or theft, parking lot hit and run, etc not me getting in a wreck where I am at fault and totaling the car.

MiserLS400

It happened about 3 years ago... I searched for months for a replacement vehicle.

The comparable vehicles which were being used to value the vehicle in California at the time were not in the best shape. I had initially worked with his insurance company, then chose my own to subrogate. They stepped up and provided a fair market value. Comprehensive + maintenance records + AAA - saved the day. Having your own insurance company represent you can be beneficial.

~miser

2KHarrier

FWIW, I have full coverage on both the 01 and the 05. My 2001 GMC Sonoma only has comprehensive coverage, as it's probably a 1200 dollar truck at best.

MikeFoxx

iTrader: (8)

Everyone is spot on... here's the thing tomorrow when you are out and about if someone rears ends you, backs into it in a parking lot, or you hit a dog turning the corner... do you have $2500ish to toss up to repair the damages if they don't have insurance or the dog takes your bumper and a headlight? Are you able to be without this car for about a week without disrupting your regular schedule? If you can let that money go without a single complaint then roll without collision. I could pay it but I know I'd be complaining for sure... A couple hundred dollars more a year is the equivalent to dinner at chili's once a month. FWIW I kept full coverage on a 92 sc400 with over 260k because I just didn't want to be bothered with someone else's mistake. It's a personal call but the pros outweigh the cons on any car worth $1500 or more. Even with a $500 you double that $500 on a total loss. Some go liability at $3500 because you will still have potential uninsured motorist property damage at $3500 or blue book value whichever comes first if you aren't at fault. I've been an insurance agent for 16 years 13 with AAA. Glad to read we took care of a member here on their claim! My advice keep it till you can afford to not bat an eye at out of pocket expenses out of the blue.

campisi

I have the ability to self-insure just about any of the things I own with a total loss not being even close to a catastrophic event for me. That said I have full coverage on my house and my 03 Lexus and on my 13 Nissan Xterra since the risk/reward is on my side on those vehicles (I'd rather NOT lose several thousand dollars). Liability only on my 94 Nissan D21 pickup and my old motorcycle.

Daspyda

iTrader: (1)

Florida is a "no-fault" state. In the event of a collision, your insurance company takes care of YOU.

However, we also have the "Bureau of Motorist Compliance" A FAQ is here: http://www.flhsmv.gov/ddl/frfaqcrash.html

One quote from that FAQ:

I would suggest contacting a lawyer for clarification of what you want to do...especially if you have substantial assets.

vfr700f2

Daspyda, that's what liability insurance is for, and the OP is not asking about dropping liability.

Boca, what does your comp/collision cost? Mine is about $160 per car every 6 months. Totally worth the cost to avoid replacing/repairing a $6K car out of pocket.

Bocatrip

$200 annually for the Lexus. I will be keeping the coverage. Thanks everyone for all your imput. I guess I knew I was keeping it anyway.