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Posted: 12/10/2003 3:33:12 AM EDT
I can't ever get a straight answer out of my insurance company over this. At what point should I reduce my insurance coverage on a vehicle? I have a '98 Ford F150 on which I'm currently carrying comprehensive and collision and its book value is between $6K and $7K. Anyone?
Link Posted: 12/10/2003 3:45:58 AM EDT
Depends on you. At what point can you afford a total loss of the vehicle? (theft or collision)
Link Posted: 12/10/2003 3:46:20 AM EDT
You can't get a straight answer because it's a crap shoot. I'm assuming you own it outright so you don't have to have full coverage on it anymore. You also need to find out how much you'll save over the course of a year by dropping the coverage down for anyone to give you any advice. If it was me, and I owned a $6k truck outright, I'd probably drop the coverage down. The way I figure it is even if I total it, I'm going to be picking up a new car payment, so I'd rather save the money now.
Link Posted: 12/10/2003 3:46:56 AM EDT
Link Posted: 12/10/2003 4:10:02 AM EDT
Link Posted: 12/10/2003 4:10:32 AM EDT
Depends on you. At what point can you afford a total loss of the vehicle? (theft or collision)
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You sound like an insurance agent. I don't want to take a total loss on my bicycle, but at what point is it financially unwise to continue paying for full-coverage insurance?
You also need to find out how much you'll save over the course of a year by dropping the coverage down for anyone to give you any advice.
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A little less than $500 annually is what I'd save.
I'd keep collision on it at this point. Once the value gets down around $ 4k or less I'd dump the collision.
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That's a little easier for me to understand. Thanks for the replies.
Link Posted: 12/10/2003 4:11:06 AM EDT
Ever consider raising the deductable to the max?
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It is.
Link Posted: 12/10/2003 4:44:09 AM EDT
It's good to re-shop your car insurance every other year or so if you're going to keep the car for a long time. The reason is; when you buy a car new (or nearly new) and insure it, you are buying insurance on the higher value of the vehicle and the rate is also higher. As time passes, the car depreciates BUT your premium does not go down. Check other rates as the car ages and let your current insurance company know that you'd be interested to hear their bid on coverage too, just to let them know that they're not the only insurance company that you are shopping. [;)]
Link Posted: 12/10/2003 4:48:20 AM EDT
It's good to re-shop your car insurance every other year or so if you're going to keep the car for a long time. The reason is; when you buy a car new (or nearly new) and insure it, you are buying insurance on the higher value of the vehicle and the rate is also higher. As time passes, the car depreciates BUT your premium does not go down. Check other rates as the car ages and let your current insurance company know that you'd be interested to hear their bid on coverage too, just to let them know that they're not the only insurance company that you are shopping.
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That's what I did last year when I changed over to USAA. I was bent over and JAMMED (to put it mildly) by Allstate over a claim my wife had that was ballooned from $450 to $3000. FUCK ALLSTATE!!!!! At any rate, I'm not unhappy with my rates, I just don't want to pay for something I don't really need.
Link Posted: 12/10/2003 5:19:03 AM EDT
I have what's known as a bond. It's really inexpensive and does not matter how many cars I have as I am the insured. It does not, however, cover the wife or anyone else, just you in any vehicle. My wife has it too, had 2 accidents paid off, no problems. If you have several cars, they don't even care about the VIN, you are covered, even in someone elses vehicle. You may have to ask around, compare notes and do some math.
Link Posted: 12/10/2003 5:25:44 AM EDT
I have what's known as a bond. It's really inexpensive and does not matter how many cars I have as I am the insured. It does not, however, cover the wife or anyone else, just you in any vehicle. My wife has it too, had 2 accidents paid off, no problems. If you have several cars, they don't even care about the VIN, you are covered, even in someone elses vehicle. You may have to ask around, compare notes and do some math.
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That sounds like something that may not be offered in all states. We're required to carry 10/20/10 liability coverage here on all vehicles with additional requirements set by lenders on financed automobiles. Please elaborate a little more on this bond. Is it something you purchased through an insurance agent? Thanks.
Link Posted: 12/10/2003 5:29:38 AM EDT
I'm not trying to sound like an insurance agent. You can't just pick a number and say "stop insuring" at that point, IMHO. It depends on what you can afford. If you can't afford to replace that $6,000 vehicle yourself, then you'd better pay the $500 per year for insurance. A true cross-over point might be where a replacement vehicle payment is equal to the insurance payment, but that's probably down around $1,500, I'll bet.
Link Posted: 12/10/2003 5:52:09 AM EDT
Originally Posted By Jim_Dandy:
I have what's known as a bond. It's really inexpensive and does not matter how many cars I have as I am the insured. It does not, however, cover the wife or anyone else, just you in any vehicle. My wife has it too, had 2 accidents paid off, no problems. If you have several cars, they don't even care about the VIN, you are covered, even in someone elses vehicle. You may have to ask around, compare notes and do some math.
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That sounds like something that may not be offered in all states. We're required to carry 10/20/10 liability coverage here on all vehicles with additional requirements set by lenders on financed automobiles. Please elaborate a little more on this bond. Is it something you purchased through an insurance agent? Thanks.
View Quote
I went through a broker/agent and it meets or exceeds state minimum...12,500/25/7500 At $170 every 6 months, I have no complaints. The name is Lincoln General Ins. Co. C/O Vision Insurance Group P.O. Box 2328 Brentwood Tenn. 37024-2328 The number to report accidents 1-877-584-7466, maybe they can steer you with a better phone # ? Or see if it works in your state.
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