[quote=bearishgurl]
Piggs, I’m thinking of calling my ins agent Monday and canceling my comp/collision coverage on my vehicle to shave $340 yr off my auto premium. It will be 18 years old in June and its KBB Private Party value is about $3K. Of course, I own it outright. It is a Japanese “luxury” car with expensive parts and body. Would Piggs do this, or just bite the bullet and keep the coverage. I can’t afford to replace it with ANYTHING drivable if something happens to it that is deemed “my fault.” Currently, it runs like a charm. But I need to reduce my monthly expenses for a few months, pronto.
Edit: I forgot to mention that my comp/collision coverage has a $500 deductible provision. Would Piggs just raise the deductible to $1,000 in my case, or do away with the coverage entirely?[/quote]
BG… There’s a time to save money and pennypinch, and there is a time not to… And when it comes to insurance, it’s an area where you don’t want to skimp on…..You have one car, and basically, what you are suggesting is n to not have collision and not have comprehensive coverage…Bad idea, really bad idea…for the following reasons.
1)If you ever rent a car, you are now on the hook for your own insurance. Rental agencies always want proof of not only liability insurance but also collision. If you don’t have it, they will ask you to purchase their exorbitant insurance. If you lie and say you have collision (they don’t check), and you do get into an accident with your rental car, you’re on the hook for the complete repair of your rental car…And think twice if you thinking you’ll never rent a car…Being that you only have one car, if it ever ends up in the repair shop, you will be most likely borrowing/rent a car.
2)Declining comprehensive will really screw you if your car ever gets vandalized, broken into,etc.. Suppose someone smashes your quarter glass window (which probably is more expensive than the front windshield)…You’re on the hook…Suppose someone sets fire to your car, or slashes your tires…etc.etc.etc
3)For an older car, and especially if it’s your only car, you rather than switching your comprehensive to a larger deductible, you should be considering changing your policy to a lower the deductible…because for an old car, the difference between say a $0 deductible comprehensive and a $250 deductible most likely will be a few bucks for 6 months. Similarly if don’t have a spare car, and have the possibility of renting a car when your own single car is out of service, you should consider lowering your deductible on the collision rather than raising it…Again, because if your car is old, getting a lower deductible collision is a few bucks, BUT it definitely covers more in the case you rent a car and trash that car.
Things are slightly different if you have two cars. With two cars, you probably can get away with not having collision on an old car, because the second or new car has collision, so car rentals are covered by the collision coverage on your second car. Also, if you have rental car reimbursement, you can get rid of that too since you have two cars.
