Insurance - Car Almost Paid For

[SamSpade]

Ok, I should understand this, but I really don't.

When your car is paid for, what part of your insurance should you change?

Comprehensive? Collision? I know there's a reason why people drop some coverage, but I've never really read why. Can someone tell me in plain English?

 

[Vince]

I always drop the collision after I pay off a vehicle just due to the fact it's probably 3 to 5 years old and not cost effective, but then I always have two vehicles, one with collision and the older one without.

 

[Larry Gude]

Ok, I should understand this, but I really don't.

When your car is paid for, what part of your insurance should you change?

Comprehensive? Collision? I know there's a reason why people drop some coverage, but I've never really read why. Can someone tell me in plain English?

You are weighing the cost of full coverage to the potential cost of repairing the car out of your own pocket and in relation to the value of the car should YOU mess it up.

If the car you're considering is a vehicle you'd likely fix if you dinged up the doors or bent the bumper, maybe stay with full coverage. Relatively minor looking damage is pretty expensive to fix.

 

[lovinmaryland]

You are weighing the cost of full coverage to the potential cost of repairing the car out of your own pocket and in relation to the value of the car should YOU mess it up.
.

I always suggest to clients that if they can afford to either a) come up w/ money to make repairs should the car get damaged in an accident or b) have the money to replace this veh. should it be totaled in an accident that they drop the collision on their veh. otherwise keep it in place.

 

[awpitt]

Ok, I should understand this, but I really don't.

When your car is paid for, what part of your insurance should you change?

Comprehensive? Collision? I know there's a reason why people drop some coverage, but I've never really read why. Can someone tell me in plain English?

Keep the coverage but increase the deductables. You can save a lot that way.

 

[desertrat]

Ok, I should understand this, but I really don't.

When your car is paid for, what part of your insurance should you change?

Comprehensive? Collision? I know there's a reason why people drop some coverage, but I've never really read why. Can someone tell me in plain English?

I guess it would depend on how much the car is worth. Even then with my trusty 95 tbird, that might fetch $1500, I keep both since it is only costing me $110 per year. That is a $250 deductable. I'd probably never put a claim in that wasn't a total loss since they would raise my rates.