Should you drop collision coverage from your old car?

Posted: Tue Jun 05, 2007 04:46 am Post Subject:

Yes, you should.

Normally collision and comprehensive coverages are required when the car is new. And both are quite costly to buy as compared to the other coverages.

Therefore, getting these coverages on a 10-year old car do not make any sense.

Thanks

Juanita.

Posted: Tue Jun 05, 2007 05:29 am Post Subject: when to drop full coverage on collision for an old car?

Hi friend,

You can have one collision coverage for your car.
This covers you and will pay your medical expenses and property damage to yourself or your car.

Thanks,
Cyrus

Posted: Tue Jun 05, 2007 05:31 am Post Subject:

Thanks cyrus I will have a collision coverage for my car.

Thanks again,
Mycar

Posted: Tue Jun 05, 2007 05:36 am Post Subject: collision insurance old car

Thanks cyrus I will have a collision coverage for my car.

Thanks again,
Mycar

Posted: Tue Jun 05, 2007 04:55 pm Post Subject: COLLISON COVERAGE

A new prospect came to me for insurance. His older vehicle only had "liability" at that time. Comparing the minimal difference in the cost of liability versus full coverage, he opted to carry full coverage on that vehicle with me.
A few months later the vehicle was totaled. A very grateful client said he would not have been able to purchase another vehicle without getting money out of the now totaled car.
Before deciding to fully drop insurance coverage on an older vehicle, consider the value of the vehicle versus the difference in premium for having full versus liability.
Often, liability makes more sense, but not always.

Posted: Wed Jun 06, 2007 04:09 am Post Subject: when to drop full coverage on collision for an old car?

Hi,

I would like to make few points before you take the final decision.

Compare the cost of coverage, i.e. the premium you pay for the coverage, with the present market value of your car. If the cost of coverage exceeds the value of the car, rethink. if you still wish to keep it, then at least reconsider the level of coverage that you already have. You can lower the amount of coverage and thus can save some money.

Secondly, collision coverage does not pay for medical expenses. Auto insurance Collision coverage will only cover the repairing cost of your car if it is damaged in an accident. Sorry! Cyrus :(

Good Bless,

Juanita.

Posted: Wed Jun 06, 2007 04:56 am Post Subject: collision insurance old car

Secondly, collision coverage does not pay for medical expenses. Collision coverage will only cover the repairing cost of your car if it is damaged in an accident. Sorry! Cyrus

Posted: Thu Jun 07, 2007 02:02 pm Post Subject: when to drop full coverage on collision for an old car?

I agree... each person needs to look at the cost of collision (and comprehensive) coverage and the value of the vehicle vs the deductible amount (last part is important as well). If you have a $1000 vehicle with a $500 deductible, your only going to be paid $500 if the vehicle is a total loss (which is rare). If this is going to cost $50/year, it might not be worth it.

I once had a 1972 Lemans convertable. It had original wheels. Comprehensive coverage cost $7/year with no deductible. This was well worth the cost as the wheels might have been stolen or some idiot might cut the top (happen twice).

Posted: Tue Jun 12, 2007 07:41 pm Post Subject:

if the cost is low on an older vehicle, comp & coll coverage can also come in handy when the damage is not enough to consider the vehicle a total loss. Especially when the company of an at fault driver is not cooperative and you need to file a claim with your company and hope for subrogation to get your deductible back. You can do a quick cost benefit analysis.

Posted: Sat Jun 30, 2007 05:01 pm Post Subject:

I think you should do this. But first consult with you insurance agency - they will tell for certain.