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Discussion Starter · #1 ·
Not fishing, but looking for people's thoughts on when to drop collision coverage from a vehicle. We have a budding new teenage driver in the house and can save some pretty good bucks by dropping collision insurance on my least valuable vehicle (my truck...least valuable in the insurance company's eyes but practically priceless in mine).

Anybody got a ratio, pct, threshold value or age on a truck where they flip the switch and take their chances on paying for damage out of pocket?

Any other advice from those who've gone off this cliff before me are most welcome!
 

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I'd say at the point you feel you are able to absorb a total loss of the vehicle (that could mean having enough money in bank to replace it, willing to get a loan for a replacement or do with out). That will differ from person to person and time to time.
 

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My wife's Tahoe will be paid off this month and I keeping full coverage on it. Like Topsail said it is cheaper than having to replace it if something happens. I myself like the thought of one less payment and no worries. Plus my Ford Ranger will not haul my boat. So if I drop coverage and something happens I can't go fishing.
 

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Red X Angler
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Agree with TA 100%. I would also compare keeping the collision vs buying a "clunker" for the kid to drive exclusively.
 

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Whenever the vehicle is paid off and like Mike said.. when it's to the point of being worth it to drop the extra insurance.

Once my little truck was paid off, I was on the phone that day reducing my policy. I figure I'm covered should I hit someone, but if someone hit me.. I would "hope" their insurance would cover it should they have it. If I hit someone... their vehicle will be covered, but I'd be stuck to repair my vehicle. At this point, my total vehicle worth on the little truck cant be no more than 3K, so it was worth it to drop full coverage.
 

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Is there a way to tell how much you will get for your vehicle if it is totaled. I was under the impression that if I wrecked my 95 ford explorer with over 200k on it that even with collision I wouldn't get but a MAYBE 2k from the insurance and I would still have to pay the deductible. If that is true then wouldn't you have to weigh that in your decision as well?
 

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Discussion Starter · #8 ·
dlcomer - you can check out used vehicle values at kbb.com. Not sure whether insurance settlements are likely to be closer to trade-in or retail values. Deductible definitely has to factor in. You're only paying for that sliver of value between deductible and replacement value, and the sliver keeps getting smaller as the value falls. That explorer sounds like toast - time for an upgrade:).
 

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Red X Angler
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Guys having spent several years in the collision business as a Bodyshop owner I can tell you that, once a car is over 5 yrs old, or over 100k miles (unless of course it is a specailty vehicle) trade in value will be an average of what you would get. I've watched clean, good running but high mileage vehicles over 5 yrs old go to the salvage yard with little more than a bent fender, scratched door and a broken headlight. Then I have bought them at auction for 1/4 their value, fixed them myself and resold them as salvage reconstructs. I made real money in the early 90's doing this but was too young and dumb to make good use of it...LOL!!
**also, ALWAYS argue over the first insurance offer for payoff on a totaled vehicle!! They will "low-ball" every time. Keeping receipts for major repairs helps as well.
 

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To keep my insurance down from what could happen with a teenager at the wheel. I helped my son buy a small truck and he had to pay for his own insurance. It was an older truck so we didn't need collision.

That way if he got a ticket it reflected back to his insurance and not mine, same with any wreck. It was a little pricy but he learned to be easy and to work to pay for his insurance.

tight lines <*)))))>{
 

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...I figure I'm covered should I hit someone, but if someone hit me.. I would "hope" their insurance would cover it should they have it...
I wouldn't put too much faith in that. I can't tell you how many people I cite every year for not having insurance, and I'm only a fraction of a percent of what the SHP writes. I would never rely on someone else to be insured.
 

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Discussion Starter · #12 ·
The truck in question at my house is a 2000 with 125K (creampuff) miles. Hard to think of it as 8 years old...

I think this is one of those cases where if it was somebody else's truck, it would look like an easier decision. But since its mine and I'm emotionally involved, it just HAS TO BE worth more than your run-of-the-mill 8 yr old, 125K mileage truck...

(doubt my insurance company would be swayed)
 

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I wouldn't put too much faith in that. I can't tell you how many people I cite every year for not having insurance, and I'm only a fraction of a percent of what the SHP writes. I would never rely on someone else to be insured.
I agree.. but.. that's where taking them to court comes in.. so if they hit ya.. and dont have insurance and you can prove it in court.. then thats where you'd have to get them. Hassle sure... but it's the price you pay for not having full coverage or uninsured motorist coverage and keeping a liability only policy.

I personally dont rely on them being insured properly,, but I 'hope' other drivers do have some form of insurance... If not and at fault.. see ya in court..

full coverage - set an forget :D
Liability only.. you're bettin nothing will happen:eek:

:)
 

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The truck in question at my house is a 2000 with 125K (creampuff) miles. Hard to think of it as 8 years old...

I think this is one of those cases where if it was somebody else's truck, it would look like an easier decision. But since its mine and I'm emotionally involved, it just HAS TO BE worth more than your run-of-the-mill 8 yr old, 125K mileage truck...

(doubt my insurance company would be swayed)
I'm with ya Jeff. I have a 2001 truck with 78,000 miles on it. If it were to be in a wreck, I'd never be able to get what if cost to replace it from the insurance company (if you could find a seven year old truck with 78K on it for sale). I still have it insured because it's worth more than I care to lose.
 

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I agree.. but.. that's where taking them to court comes in.. so if they hit ya.. and dont have insurance and you can prove it in court.. then thats where you'd have to get them. Hassle sure... but it's the price you pay for not having full coverage or uninsured motorist coverage and keeping a liability only policy.

I personally dont rely on them being insured properly,, but I 'hope' other drivers do have some form of insurance... If not and at fault.. see ya in court..

full coverage - set an forget :D
Liability only.. you're bettin nothing will happen:eek:

:)
This is true, but if you sue and win and they are financially indigent and unable to pay (which is probably why they don't have insurance in the first place), what then? You might be able to have their wages garnished. But then, so do fathers who fail to pay child support and they are still able to work around the system.

Not saying your logic is right or wrong...it's your choice. Just be careful. ;)
 

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Just adding to the topic and your right,, it's definately up to the individual to know what they need.

I carry full cov on my two trucks and liability on the little truck myself. ;)

Just dont hit me and have no insurance when I'm in my little truck.. might have to send Gus and the boy's from Philly to pay a collection visit :D:eek:
 

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The truck in question at my house is a 2000 with 125K (creampuff) miles. Hard to think of it as 8 years old...

I think this is one of those cases where if it was somebody else's truck, it would look like an easier decision. But since its mine and I'm emotionally involved, it just HAS TO BE worth more than your run-of-the-mill 8 yr old, 125K mileage truck...

(doubt my insurance company would be swayed)
On the used private market, it's worth what someone is willing to pay for it.
If it's primo condition and the only thing is high miles.. maybe you could work with the insurance co. to fully cover, but change some of the principle amounts. You could also insure it for replacement cost or actual value... that's all up to you and how you determine it.

To determine actual cash value you could call or go to a local car dealer and see what it would be worth via black book, get a blue book value as well and throw in the NADA value and average the 3. Then figure what it's worth to you to fully insure and adjust your coverage accordingly.

If it's primo condition, then might be worth the extra "insurance/assurance"... Might have to emotionally detach from it though... it's only a vehicle.. vehicles can be replaced.

I also believe there's a point of no return as well with some insurance companies... if it gets to a certain age.. then some wont insure unless you get some kind of special coverage (classic/vintage/collector... etc..)
 

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Red X Angler
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Go with a high deductable, low coverage, if you feel you need to insure. What kind of truck is it? That makes a HUGE difference in value and repair..
 

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im not sure if it will help, but when i recieved my liscence i had to have my own insurance. so the money i made in the summer was mainly for the insurance bill and for eating while heading to football games. Just a thought.
 

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When the cost of the collision and comp reaches 10 % of the blue book value, it's time to drop. It's a good idea to go 100,000/300,000 on the bodily injury liability, if you own your home and make over 30 or 40k. If you're still making house payments, maybe they won't come after you too hard. Just my opinion.
 
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