Help me figure out when to drop collision/comprehensive on an auto

Going through my yearly tax preparation, it occured to me that I probably am over-insuring my kids’ vehicles. The vehicles are 1993, 1994, and 1995 models and probably don’t have much “book” value.

I realize that there is probably a simple way to figure when it’s time to stop insuring them for collision/comprehensive damage. I also think some of y’all have already gone through that exercise! The first thing I’m going to do is look up each car’s value, and look at how much the pertinent portion of each premium is.

What would you do next?

(Thanks in advance!)

I generally drop mine when I get the car paid off. I’m probably in a different situation though. My cars usually have well over 100,000 miles before it is paid off. Collision/Comprehensive isn’t really that expensive compared to liability so if my car is in really good shape body wise and engine wise I will usually keep it for another year or two.

Also if your kids are anything like my dingbat daughter ( love you honey ) who likes to leave all of her electronic gadgets in plain view on the passenger seat, comprehensive would easily pay for itself after the first theft of an ipod or whatever else of value.

Hmm. Good point about theft, but I’ve never thought about reporting something stolen on comprehensive - just windshields. They get a lot of cracked windshields. Unless they just total the whole thing.

Comprehensive is about $400 per year for each car, so I’m paying $1200 total per year for that.

In my state, theft of items from a car (that are not an actual part of the car) are covered under your homeowners/renters/condo policy, not your auto policy and they are subject to your homeowners deductible.

$400 per year comp on any car seems about 3 or 4 times more expensive than it should be!

Depends on the ages of the kids. Assuming they’re teenage drivers, $400 a year isn’t bad.

I still have comprehensive/collision on my '99 Camry. Dropping it wouldn’t save me that much, and I’ve had the windshield replaced twice, fully covered by the insurance. (Damn gravel trucks.)

I thought about dropping mine when I had paid off my truck, and realized it (the truck) wasn’t worth all that much (selling it, I mean). But I didn’t.

2 months later I was rear ended at a traffic light. Truck was totalled.

Insurance gave me nearly double what I could have sold it for, pre-crash.

Sure glad I didn’t cancel it.

That’s the burning question, spooje. I looked up the values and they are in the $1500 to $2500 range for these cars. For collision I’m paying roughly $2400 per year; for comprehensive, $1200 (for all three together). IOW half the potential value of the car every year (for each car).

Heropsychodreamer, insurance is very expensive for young men. My son’s premium is about 3 to 4 times as much as either of his sisters’. He’s 20.

gravitycrash, they’re all paid for.

Does comprehensive really cost more for a younger person? I can see liability and collision, but comprehensive?

I just checked and I pay $44 a year for two much newer cars for comprehensive. Of course that is with a $1000 deductible. Paying half the value of the car every year to cover it sounds like a rather bad deal. If you are getting a new windshield every year and the cars getting broken into is a real threat, maybe it is worth it though.

I would probably drop the collision at least and tell the kids to save their pennies in case they get in an at-fault accident.

It really does. His is about $600 a year. Those girls’, with a $100 deductible, is about $200 a year (each). The girls are 19 and 23. (Before anyone asks, they are on my insurance policy 'cause they are students).

I was going to cancel mine this year, but had the thought that the comprehensive on my car possibly applies to cars I rent as well. Anyone know if I was right or wrong there?

One option that I recommend if you do not want to drop coverage is to raise your deductible. That’s a great compromise that will still save you lots of money but will limit your exposure in case of a loss.

There is no black & white calculation that will tell you what to do. Normally insurance is there in case a loss would be catastrophic for you financially. You have to decide how much of a hardship it would be if you kid totalled the car, or if it was stolen, or a tree fell on it.

Just to clarify—

All three of your kids are students and on your policy? And your son is being charged 3x as much?

Do they have the same driving records? Any accidents? Something ain’t right.

Probably, since the rental companies require you to have it (or buy it from them for a LOT more money).

Ah, I wasn’t clear, 'scuse me. He isn’t a student at this time. So he has two things going against him, one not getting a ‘good student’ discount, and one being a young male under the age of 24. He has no moving violations on his record. His sisters have each had one fender-bender, but they do get the ‘good student’ discount.

Until this afternoon! Spooje has jinxed me. The 19-year old was involved in a collision with an Escalade. Her Camry came out on the short end of the stick. :smack: