Collision Ins. on an old vehicle

Apr 15, 2019

  1. David Mattice
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    David Mattice New Member

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    Question is, is it wise to continue to carry collision insurance on a 10 year old vehicle with over 150,000 miles
     
  2. David Irwin
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    David Irwin New Member

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    There are formulas out there where you can do the math, but I don't have any of them available off the top my head. A Google search should find one or more for you. My gut would tell me no though. That is also getting to the point where some companies wouldn't offer you Collision coverage. If you have it, you an keep it, but if you are asking for it and it is new coverage for the car the insurer may decline your request or request a physical inspection before doing it.
     
  3. fed up
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    fed up Guru

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    Depends on the value of the vehicle which you can get from KBB.COM. If the cost to carry the collision and comp coverage is close to the value then it makes no sense. If the vehicle is worth $4K and the cost is $500 X 2 terms, you are looking at $1000 to cover the $4000 vehicle plus your deductible
     
    fed up, Apr 15, 2019
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  4. InsCommentary
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    InsCommentary Guru

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    The question is, what would it cost to replace your vehicle if it was totaled tomorrow? Do you have that in cash or other liquid assets or could you finance it? This was an article from insure.com:

    How to cut your car insurance bill in half

    They were suggesting that collision be dropped (along with some other really, really bad advice) to cut your premium in half. At the time the article was published, I checked the KBB value of each of the list vehicles. The cheapest one was $12,000. So, could someone come up with $12,000 if the vehicle was destroyed tomorrow and had to be replaced?
     
  5. Markthebroker
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    Markthebroker Guru

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    You are asking a math question without giving us any of the numbers.

    How much will collision coverage cost, and how much is the vehicle worth?
     
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