Posted: 14 Dec 2007 01:00 Post Subject:
For the last five years I am driving my car. Thank god I have not yet received any ticket, fines nor my car has collided. Well I am thinking of dropping the collision coverage. Can I do that now?
Speaking as a lay person, I've heard the best way to decide if you need the coverage is if you can afford to fix your car if the worst happened, then you probably don't need it. You're the only one that can decide whether you should drop insurance coverage like this one. I'm sure there are other considerations you should take into account the professionals here will share with you. :)
I always feel that when you do that you're tempting fate though! :lol: Your own driving record is obviously good, but it's the others on the road you need to worry about.
You can contact your insurance company to see what you'd need to do to drop it. If you plan to do so to try and cut costs, it may be worthwhile shopping around for insurance quotes elsewhere. You never know, you could get similar collision coverage to what you have at a reduced rate from another provider. No harm in asking!
Hope that helps.
Posted: 14 Dec 2007 07:38 Post Subject:
For the last five years I am driving my car. Thank god I have not yet received any ticket, fines nor my car has collided.
Wow!!! liver10, you are one of those angel drivers. I bow down to you mate :D
Posted: 14 Dec 2007 08:40 Post Subject:
fines nor my car has collided
Well liver, I'll say that you are quite blessed that way. Lilac has rightly mentioned that it's the other fender-bender drivers you need to worry about. Sometimes people do drive like hell.
Anyways, coming to your auto insurance problem, collision coverage is mostly required when the car is new, i.e. when the market value of the car is high. The value of the car depreciates with time and I believe, that the value of a five year old car will be enough low (although, you haven't mentioned its make). You need to carry collision coverage as long as the cost of repairing it remains high or more than the value of the car. Therefore, if you drop insurance coverage to save money, I would rather suggest that you drop it.
Try to find out the value of your car from kbb.com. Normally this is the value the insurer will offer you if they have to total it at a given point of time. Shopping around is also not a bad idea.
Hope the input will help you to decide.
Posted: 14 Dec 2007 10:19 Post Subject:
Good advise guys, but I need to add that this while helpful this isn't correct...
Try to find out the value of your car from kbb.com. Normally this is the value the insurer will offer you if they have to total it at a given point of time. Shopping around is also not a bad idea.I know of no insurance carriers that use the kelly blue book to determine a vehicles ACV (actual cash value) most either have computer programs like CCC, or valuemate, or use either NADA or Edmunds...just a minor technicality..the blue book can help you find the ACV of your vehicle just not the source that insurance adjusters will use (to my knowledge anyway)... :D
Posted: 15 Dec 2007 10:03 Post Subject:
Thanks, for sharing this valuable piece of information Lori.
Posted: 22 Dec 2007 02:43 Post Subject:
I am always scared to drop insurance coverage on my vehicles, I have them both under full coverage, full collision and comprehensive, with full tort on both and all drivers covered, covered, covered, covered, I probably over do it and could pull some of it off my pick up, but I always think about what it would cost to replace it. I rarely drive it but think what if, what if, what if. I guess I would rather be safe than sorry. I have to keep everything on my other vehicle because it is financed, but even if it was not financed I would keep every thing on it to cover me and the other drivers in the house.
Posted: 24 Dec 2007 03:24 Post Subject:
Have you inquired as to what the cost difference will be if you DO drop your collision coverage? The difference may not be significant enough for you to even do it. Especially if you pay monthly, which would stretch your payments out and seem like an even less savings. I had a client to drop their collision coverage to save a few dollars a month and it wasnt 3 months after that, they had an accident which THEY were at fault. I'm sure if they couldve forcasted that incident, they wouldve held on to it a little longer. So put a pencil to it and see if its really going to make sense for you to do even when its about collision insurance old car coverage.
Web address deleted - Evan
Posted: 26 Dec 2007 05:44 Post Subject:
I would not drop the coverage, I keep what I need and more to be covered in any accident, don't care what I am driving at the time, I keep full coveraga and full tort options always.
Posted: 27 Dec 2007 03:44 Post Subject:
I would not either, but then again, I don't usually have a few grand laying around for paying for fixing a vehicle or replacing a vehicle, I would keep it even if it only meant getting a few bucks back, that is a few bucks toward another vehicle, unless you are driving a really bad vehicle. It is really a personal choice.
Posted: 27 Dec 2007 07:31 Post Subject:
I always look forward to the decreases, this is a really hefty jump, $336 a year, I commented in this thread about being overly insured, guess I will take it all back, cause now I am thinking about dropping some coverage on the vehicle that we don't drive that often. It is paid off and is a 1996 pickup, what I take off still won't match the increase. I love my truck and wanted to keep the full coverage to protect her, but I guess that I will have to reconsider.
Posted: 28 Dec 2007 10:39 Post Subject:
Good natured if you will provide, yr/make/model/mileage/options/any prior unrepaired damage... i'll be happy to run a value on it for you (will be close to what another adjuster would offer should it total) then you can make a more informed choice. :)
Posted: 28 Dec 2007 01:35 Post Subject:
It is a 1996, chevy silverado, mileage is around 160,000, 350 engine, 4x4, power windows, locks, cruise control, I think it is abs braking, can't remember any other options right now, that should be enough. No damage on it that has not been repaired, so I would say that it is in good condition to excellent condition. I haul coal in it, so with each load, I get a little chip here and there. It is still a nice truck though. I am guessing the mileage, I only put about 4000 miles on it a year, if even that. thanks Lori
Posted: 28 Dec 2007 01:38 Post Subject:
I just hate having to make this decision because of money, the increase and all. I have always wanted to fill protected if something should happen, this is stressful to me, I am wondering where I can find why the increase has happen and where the money is going. That is a really big increase, I am one person, imagine taking it times the number of insured vehicles in Pa. That is just crazy. do you know where I can locate this information?
Yeah, I could just hit the edit button and add this information, anyway, it is an automatic transmission and has air conditioning, that is all I remember right now.
Posted: 28 Dec 2007 10:14 Post Subject:
Good natured, near as I can tell the truck is still worth about 7k...you didn't say (so I assumed NOT) that it is a diesel if so add about 400.00, also you didn't say if 1/2, 3/4 or 1ton (will be 1500, 2500, 3500 on a GM)...I assumed 1/2 ton (1500)....also didn't say extended or standard cab or sportside or fleet, those really don't make too much difference...Now this 7-7800.00 assumes that this little chips you get aren't bad enough to detract from it's value....
To me if it is worth over 4k (in my financial picture) i personally would keep collision and comp on it, cause it would be a bit of a hardship, or I would have to shift some money that I'd just as soon leave alone to replace it...or get a loan, neither of which is attractive to me....
$336 a yearIs this increase for ONE vehicle? If so please go over your coverages/deductibles and let's see if we can't find a better alternative for you...this sounds terribly high to me...course I don't know your age, martial status, driving record, or who (age and gender/driving record wise) else is a listed driver all of this will make a difference...deductibles too can make a really big difference, what are your coll/comp deductibles?
The DOI can tell you re: the rate increase.....
You ask about the tort thing....here is my understanding, well wait, there is another thread where this was discussed let me find it and i'll come back and post it here.......then if that doesn't answer it for you, (it's confusing to me too!) then we'll dig deeper....When is your premium due? How much time do we have to figure this all out? Try not to stress we'll help you figure it out.... :wink:
Posted: 28 Dec 2007 10:20 Post Subject:
Ok found it, you've actually posted in this thread it too is PA, I think second page or so is where we get into this...re-read this thread and see if it answers your question re:your states ''funny'' laws...:)
As you see the OP in this thread ''may'' have an out because it's an out of state driver (meaning can sue the ''guilty'') but if both PA it is my understanding she would have zero option (re: injury settlement against this driver)...I have very limited personal knowledge of this...I assume when making this choice there is a great reduction in premium? On the upside if the other party choses it they can't sue you or recover from you either right?
Posted: 28 Dec 2007 10:25 Post Subject:
PA is a choice-no-fault state. Choice-no-fault is a hybrid of the pure no-fault system. Under this system, drivers have the choice of being insured under either a pure no-fault plan or a modified no-fault plan. Under the pure nofault plan, one is unable to sue negligent drivers for non-economic damages, and is immune from such suits himself/herself. Under the traditional tort (personal injury suits) rights, one can sue other drivers who have also chosen to retain their tort rights, and in return they can sue him/her. If one that has chosen the modified plan has an accident with a driver insured under the pure no-fault plan, they are both unable to sue the other party.
Posted: 28 Dec 2007 11:06 Post Subject:
It would be hard for me to replace the pick up and even though we don't use it much, when we need it, we need it. So I think I will leave the comp/collision on it. What do you think about the dropping the comprehensive coverage?
Posted: 28 Dec 2007 11:13 Post Subject:
With the tort thing, My mother was with me when someone rearended us, she got pretty messed up, it was only because I had full tort that she was able to recover everything, I think I will go ahead and keep full tort. I am not sure at this point that I am willing to change anything, I drive about 35 miles one way to work everyday and deal with some nuts on the road, alot of coal trucks that fly and younger people that do the same. I would not want an accident to get me so far in the whole that I would loose my home or anything else because I could not go to work or something. I purchased a gap insurance on my car, still paying on it, so I wanted to make sure that I was protected their on the value in case of total loss, they would pay the balance that the insurance company would not. I take this insurance coverage very seriously, because I know financially an accident affects more than just the car, it could affect your entire life financially and physically. I may be over cautious, but I just don't want to hear, "sorry, that is not covered". I am really nervous about making these changes and I do appreciate all you input Lori, sorry to ramble, but this really concerns me.
Posted: 29 Dec 2007 10:30 Post Subject:
I purchased a gap insurance on my car, still paying on it, so I wanted to make sure that I was protected their on the value in case of total loss, they would pay the balance that the insurance company would not.Here is an area you might be able to trim, if you want I'll run that value too, and you can see if GAP is still needed (it may not be if you owe less than the ACV now)...
I take this insurance coverage very seriously, because I know financially an accident affects more than just the car, it could affect your entire life financially and physically. I may be over cautious, but I just don't want to hear, "sorry, that is not covered". I wish more people thought this way!
I am really nervous about making these changes and I do appreciate all you input Lori, sorry to ramble, but this really concerns me.no apology needed, want to make sure you understand everything...now what about those deductibles? hum? that's an often overlooked way to save big (some times)....
I think I will go ahead and keep full tort. I am not sure at this point that I am willing to change anythingThink I would too, if I were in this type of state.
What do you think about the dropping the comprehensive coverage?Well, got any deer in PA? :lol: again, look at these deductibles...and see what you have on your vehicles deductible wise, and lets look at that...personally on a 7k vehicle I'd keep it...
Posted: 29 Dec 2007 12:15 Post Subject:
I just bought the car last year and the gap is fully paid for and not refundable through the dealer, so I am stuck there, I won't pay anymore for it.
As far as the tort, I am glad you agree, I know I have seen people have big issues with that when they have been seriously hurt.
Deer, oh my god, do we have deer and I live in the sticks so, we have even more, I feed them in my back yard.
So, I am not gonna change a thing, I guess I will just bear the burden of paying the higher insurance, I will wait till the policy is about to renew and then shop around and see what is out there.
thanks for all the advice Lori, you have been very helpful, I appreciate all the time and effort that you have put into this.
Posted: 29 Dec 2007 01:30 Post Subject:
So, I am not gonna change a thing,CHECK THOSE DEDUCTIBLES ! :wink: and any other coverages that may not be a necessity to you...
thanks for all the advice Lori, you have been very helpful, I appreciate all the time and effort that you have put into this.
my pleasure, truly
Posted: 29 Dec 2007 05:06 Post Subject:
I still have some time, I will review everything about twenty times, I probably will revisit with some more questions.
Looking over the policy I have $50,000/$100,000 per person/Accident UM on each vehicle, without stacking/full tort. Can you look at this for me please Lori or explain it a little more. Is this something that I could stack, and what is the difference between stacking and without stacking? Would stacking be just as good, since one sits most of the time?
Bodily injury...... full tort
$50,000/ $100,000 per person/accident
Property damage $50,000 per accident
Posted: 29 Dec 2007 11:53 Post Subject:
Stacking doesn't protect YOU re:if you injury another person. I don't know of any state that would allow you to stack your BI coverages (injury to another person that you are liable for).PA has some funny laws though, I'll try and check those for you tomorrow morning (grandson is not letting Nana work very well now! :wink: )..so you see you ONLY have 50k per person, 100k per accident, I think that is too low, I would carry a min. of 100k per person....(tell me if you don't understand this)...50k (as you can see from this forum) injury isn't uncommon..
As to your PD limit, again I think a little low I would ( and do) carry 100k...50k isn't awfully low, and would 99% of the time handle any pd exposure...but I always worry about (with my luck) lets assume I cause an accident that thru some chain reaction causes damage to four cars, then they all run into a house or something....wouldn't take long to eat up 50k fixing all of those cars....and a house! :roll:
Stacking (only allowed stacking I am aware of) relates to UM and UIM. If you are injured by an uninsured (or underinsured) motorist and your state allows UM/UIM stacking and you have two policys such as you mentioned, then there is a limit of 100k per person per accident (assumes you have two policys with 50/100 um coverage) ...your UM coverage is probably fine, especially if your state allows stacking, and see you can't sue yourself for being under insured on your UM coverage (does that make sense?).
This isn't what you wanted to hear I know, that I think your BI (especially) limits are too low... :cry: What does anyone else think? Maybe I'm more paranoid than others being an adjuster for so many years and seeing excess policy limit claims over the years... :roll:
Still girl friend....the deductibles...and do you have any other coverages? Such as road side assistance? rental? accidental death? voluntary med pay? Do you have both vehicles with the same carrier (multi car discount), do you have ALL of your insurance with the same company (companion policy discounts), any chance you're 48 or so? The company I have all of my insurance with also has a '48 plus' discount that once the youngest driver in the house reaches 48 (23rd of this month thank you very much! :wink: ) we get another discount...I'm sure other companies have similar discounts different ages maybe...
Let me know what you think...I'd also like to hear from the others particularly agents what they think about this...and the limits....???????????????????????????????
Posted: 30 Dec 2007 02:01 Post Subject:
Lori, I am going to Pm you the company name, see what you think, I had coverage through a local carrier and then got this coverage through my union hall promotion. I have no local contact on this insurance, everything is done online or over the phone, which I am ok with as long as I am truly covered the way I should be.
Posted: 28 May 2010 08:19 Post Subject: Comp/Coll
This is an older post but since I came across it in a Google search I feel there may be a folk like me that still read this info. There are a number of posts here encourageing you to not drop Comp/Coll on older vehicles. This is contrary to financial advice by most reputable organizations (such as the Insurance Information Institute). If you are "uncomfortable" not having Comp/Coll, or if you believe you are "tempting fate," these are psychological issues that play into the hands of insurance companies. Insurance is (or should be) a financial decision - what else does insurance provide other than money? Fear of being sued shouldn't play into this decision - Comp/Coll has no impact in this area, to my understanding. Be sure to purchase the inexpensive uninsured motorist insurance just in case the driver at fault is uninsured or underinsured.
Insurance companies sell you Comp/Coll insurance because they feel they will get more money from you than they will have to pay getting your vehicle repaired. If you drive safely, they are almost certainly correct. So if you can stand the low probablility that you as a safe driver will total your vehicle due to your own fault, keep this money in your pocket. Maybe the reason you don't think you can afford to have your vehicle totaled is because you are spending thousands evey year for insurance you don't use. You are much more likely to save money this way than paying money to the insurance company.