What coverage to drop if car is paid off?

Urbanappalachian

Active Member
So my car is finally paid off. It's a 2015 Mazda 3 isport, 2.0 with over 200,000 miles already. Should I get rid of comprehensive coverage or something else?
 

bsliv

Well-Known Member
My 2015 Mazda 3i Touring with 30,000 miles will be paid off next month. Mine's value is $10,000 to $14,000. I'm keeping comprehensive with $1000 deductible.

There's probably a formula that considers payments vs value but I don't know. I'll be watching other's replies.
 

NicFit

Well-Known Member
It depends on how much your willing to risk in conjunction with how able you are to replace the car while thinking about the cost of keeping the insurance versus dropping it, probably going to be complicated to figure out. Basically the savings from dropping the comprehensive has to save you more then the average you wreck a vehicle. If you wrecked one every 10 years then it might be worth keeping as you’d have to save let’s say your car is worth $10k then that’s what 10 years of payment difference would have to be. It sounds like you could easily replace it if it were wrecked but that’s something you also have to look at too. So if you know how much you’ve spent on insurance and how many claims you do and the claims are less then the cost then you could drop it, more then keep it. I’ve done one claim in the 28 years I’ve been driving, I’m thinking about dropping it although the one claim I did have to do was with Uber so I’m having to weigh that in the factor, also my car keeps getting to be more expensive so if I do mess it up then that’s a huge bill, not really sure myself once I don’t have a bank loan on it either
 

Urbanappalachian

Active Member
If insurance payments for full coverage for 2-3 years will be more than it's worth, I drop all but liability.

Of course, i could have a wreck the day after cancelling and I'm a bit screwed. YMMV
Collision is good to keep I guess. My insurance per 6 months is about $1100.
 

wallae

Well-Known Member
So my car is finally paid off. It's a 2015 Mazda 3 isport, 2.0 with over 200,000 miles already. Should I get rid of comprehensive coverage or something else?
It depends on how much money you have and how much they’re charging you
Back in the 70’s I bought a 61 Harley XLCH for 1800
Theft was 600 a year. 3 years it’s a new one
I took my chances
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So my car is finally paid off. It's a 2015 Mazda 3 isport, 2.0 with over 200,000 miles already. Should I get rid of comprehensive coverage or something else?
Your mileages are off the chart
No auction sales that high
I show wholesale at 3200
Here are the highest mile sales
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Collision is good to keep I guess. My insurance per 6 months is about $1100.
I wouldn’t pay that😂
Car worth 3200
Unless I was dead broke without and credit
I would pay myself and HOLD the cash
 

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wallae

Well-Known Member
BTW... in my real career as an airline pilot I met some very wealthy people.
One guy on the Forbes 400 had a large original 1918 beach house. All wood. Wood shingles on the roof and house.

I asked who does his fire insurance and how much was it.
He said he doesn’t have any insurance😀If it burns down I’ll put up another one.
On everything he owns he carries no insurance except the legally mandated minimum car insurance.
 

Older Chauffeur

Well-Known Member
On everything he owns he carries no insurance except the legally mandated minimum car insurance.
In effect he’s self-insuring. He’s risking assets if he’s at fault in an accident and an injured person sues him for damages over the minimum liability limits. OTOH, he probably has attorneys on retainer.

Re the OP’s question, if I understand correctly, Uber/Lyft only covers your vehicle while engaged in R/S by matching your physical damage coverage on your personal auto insurance. Assuming that your car is of low value, say $3,000, the deductibles for U/L are going to eat it up quickly. If you’re able to walk away from a total loss, with enough money set aside to replace it easily, then carrying collision coverage is probably a waste of money, and a reasonable risk. If the premium and deductible are fairly low for comprehensive, (fire, theft, tree falling, etc) that might be worth keeping.

I don’t do R/S, so my risks are quite a bit lower; limited miles driven annually, etc. But I carry comprehensive and collision on two older cars, a’91 Miata in decent shape and a super clean, low mileage, ‘02 Lexus. Each year at renewal time, (December 1) I think about it , weighing the premiums and deductibles against the value of the cars. This year, comprehensive for both cars is under $100, $250 deductible. Collision for both is about $360, $500 deductible. For now, I’m keeping things as they are, but one of these years it won’t make sense.
 

wallae

Well-Known Member
I’ve gone 26 years with only having the minimum required by law no collision no theft. No wrecks
Saved 59,000?
Just saying
 

Older Chauffeur

Well-Known Member
I’ve gone 26 years with only having the minimum required by law no collision no theft. No wrecks
Saved 59,000?
Just saying
Saved over $2200 per year? Wow! For 15 years I insured three cars for around $1800, including high limits and comprehensive and collision.
 

Older Chauffeur

Well-Known Member
Using his 1100 per 6 months
I think he was listing total premium, not just comp and collision. Still, he’s paying more for that one car(?) per six months than I pay for a year for two cars. Holy cow! And here I thought So Cal insurance rates were high.
If the OP is paying $2200 for comp and collision on that car, I would definitely say “drop it.”
 

Urbanappalachian

Active Member
I think he was listing total premium, not just comp and collision. Still, he’s paying more for that one car(?) per six months than I pay for a year for two cars. Holy cow! And here I thought So Cal insurance rates were high.
If the OP is paying $2200 for comp and collision on that car, I would definitely say “drop it.”
My comprehensive per 6 months is $52 (I'm surprised). I thought it would take a huge chunk cost-wise from the total premium.

I still don't get why Collision is different from Property Damage Liability but below is how my total premium looks:
 

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Older Chauffeur

Well-Known Member
My comprehensive per 6 months is $52 (I'm surprised). I thought it would take a huge chunk cost-wise from the total premium.

I still don't get why Collision is different from Property Damage Liability but below is how my total premium looks:
PDL is for damage you might do to property belonging to someone else. Collision damage is for your car if you are at fault.
 

mbd

Well-Known Member
So my car is finally paid off. It's a 2015 Mazda 3 isport, 2.0 with over 200,000 miles already. Should I get rid of comprehensive coverage or something else?
Toyota has the least depreciation, so protect your Toyota ...any thing else with 200k miles is not worth much.
 

MasterAbsher

Well-Known Member
Long ago I had a real nice Jag XJ. When I paid it off I asked myself the same question. I went down to bare bones. One day headed home on a rural highway a driver approaching me made a last second u-turn. I t-boned him at full speed. Somehow he didn't get hurt. My Jag was totalled. That was my first time in an ambulance. Turns out he too had bare bones insurances and had no assets. I got $15k. Didn't come close to value of Jag. Medical costs were hefty. Thats a mistake I will never make again.
 

wallae

Well-Known Member
Long ago I had a real nice Jag XJ. When I paid it off I asked myself the same question. I went down to bare bones. One day headed home on a rural highway a driver approaching me made a last second u-turn. I t-boned him at full speed. Somehow he didn't get hurt. My Jag was totalled. That was my first time in an ambulance. Turns out he too had bare bones insurances and had no assets. I got $15k. Didn't come close to value of Jag. Medical costs were hefty. Thats a mistake I will never make again.
You can’t look at the insurance on a one time basis.
I went to a casino and I won...
 
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