Carrying full coverage on a 10 year old vehicle

 

My neighbor struck a dear with her 2007 Nissan Mariano with 67000 miles. The car was still drive-able. Grill damaged, radiator pushed into fan and BOTH AIR BAGS deployed. This car was fully loaded with leather and navigation. But the cost of repairing the airbags alone was over $3500. The car was totaled.

I own a 2005 Nissan Altima with 100K miles. KBB shows $1250 approx trade in value. I am debating on cancelling my collision coverage because I know they would total it.

Any ideas.

The insurance adjuster suggested not to have full coverage on any car over 10 years old.

i agree

You are right. Because of the limited payout based on the low book value and any deductible involved, collision and comprehensive should be cancelled.

dobs108 smile

Thanks

Thanks

Save the Premium

dobs108 wrote:

You are right. Because of the limited payout based on the low book value and any deductible involved, collision and comprehensive should be cancelled.

dobs108 smile

Put the premium difference in a savings account and use for the down payment on a new one when the time comes.

--
Frank Nuvi 3597LMT 37.322760, -79.511267

Ditto

We have two 10+ Honda's and just carry the legal requirement.

~Angela

Keep for 10 years

Our goal is to buy a car and keep it for 10 years then buy another one. 10 years gives time to save for a new one.smile
We have a 2 year old one now and for the 10 years we will carry full coverage.
We have a 1996 Dodge pickup. We dropped the full coverage when it became 10 years old. Nothin on it but liability.
We keep saying we are going to get another pickup but it only has 89,000 miles and only used when we need go take trash to the dump or carry something big we buy. Needless to say it just sets most of the time. We just can't justify buying a new truck but my husband sure would like one.

--
Mary, Nuvi 2450, Garmin Viago, Honda Navigation, Nuvi 750 (gave to son)

betting against the house

All insurance is in a sense you betting against the insurance company on the likelihood of some event. They have lots of data, so on average they price the coverage so that they win, even after including very considerable overhead costs. So on average you lose, big time.

So any time you buy insurance you are betting against the house. There are still good reasons to do so. A legal requirement, a condition of something that you value enough to pay extra (such as a mortgage or buying a car on time), or an unwillingness to risk a loss which in your circumstances would be severely inconvenient.

Another category of good reason could be some element in your situation known to you but not considered by the insurance company which moves the odds a long distance. On average you will be wrong, but in a specific case you can be right.

For myself, I've never bought a car on time, and never carried any comprehensive coverage. This once cost me paying myself for a windshield cracked by a rock one week into my ownership, but on average I've saved a lot in forty-five years. I do carry more than the required minimum liability insurance, and I carry fire insurance on my home, despite a paid-off mortgage.

--
personal GPS user since 1992

Insurance Coverage

I have full coverage when I buy a new vehicle but then change & take "one-way insurance" when I reach + - 250,000 km (+ - 155,000 miles).

I figure I save a few bucks, it's a logiocal decision & has thankfully thus far always worked out in my favor smile

--
Nüvi 255WT with nüMaps Lifetime North America born on 602117815 / Nüvi 3597LMTHD born on 805972514 / I love Friday’s except when I’m on holidays ~ canuk

I agree

phranc wrote:
dobs108 wrote:

You are right. Because of the limited payout based on the low book value and any deductible involved, collision and comprehensive should be cancelled.

dobs108 smile

Put the premium difference in a savings account and use for the down payment on a new one when the time comes.

Yep, I do.

--
It is impossible to rightly govern a nation without God and the Bible. ----George Washington

Thanks to everyone

for their input.

Just did a quick estimate of

Just did a quick estimate of the value of my older SUV. With my current cost of coverage, the financial break even point for dropping coverage is about 25 years. I am not seeing me going that long without any claim, hence I still buy coverage.