by hbennett » Fri Sep 17, 2010 02:46 pm
I drive a 99 Chrysler Sebring. I would guess it's value is somewhere around 2,500. Should I keep full coverage? I would save about $500 a year. I have a $500 deductible for both collision and comp.Thoughts?Thanks!
Posted: Fri Sep 17, 2010 03:43 pm Post Subject:
If the actual cash value of the vehicle is $2500, and your deductible is $500, a total loss would result in a payment to you of $2000. For each year of coverage at $500/year, deduct that from the potential claims payment and determine whether you see any value in the coverage or not.
You could put the $500 per year in a shoebox in the closet, and barring a theft, have $2000 toward the downpayment on another car in four years. That, with the $1000 the vehicle might bring as a trade-in would equal $3000.
Your choice. Most of us as agents would probably recommend the savings plan and forgo the collision and comprehensive at this late age of your vehicle.
Posted: Fri Sep 17, 2010 08:08 pm Post Subject:
What kind of area do you live in... what is the possibility your vehicle could be stolen or vandalized? Do you park it on the street over night? How are the drivers in your area? Could you afford to replace a $2500 if it was a total loss?
Posted: Fri Sep 17, 2010 09:41 pm Post Subject:
Thanks guys.
The chances of my car being stolen are pretty low. I live in a city...yet it's fairly rural if you can belive it.
The car is parked in our driveway at night, but not in doors...
I would not be able to afford to replace the car at 2500 but am considering gambling on it to save some money. Hmm!
Thanks again.
Posted: Sun Sep 19, 2010 01:41 pm Post Subject:
Well, that's the bet alright. Can I save $500 per year in a shoebox for five years. In reality, your vehicle will be devalued every year, so in five years, it may only be worth $1,000.
Betting red or black? Just don't forget about 0/00 in the green.
Posted: Mon Sep 27, 2010 10:52 am Post Subject: Best Auto Insurance
Help yourself - you can check your quotes in internet, for example here - Best Auto Insurance Rate Review
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