full coverage or not?

[hankster017]

I have a 2002 chevy tahoe, it has 175,000 miles, I just put all new suspension parts on it. It runs great and I could easily see it gong 400,000 miles. Would I be foolish to get full coverage insurance on it. It's value is in the $4000 range what is my best option? thank you

 

[Elliot Becker]

I have a 2002 chevy tahoe, it has 175,000 miles, I just put all new suspension parts on it. It runs great and I could easily see it gong 400,000 miles. Would I be foolish to get full coverage insurance on it. It's value is in the $4000 range what is my best option? thank you

Hi Hank,

Special Agent Elliot Becker here. There is no such thing as full coverage insurance.

That being said, how much is the cost of comp and collision on the vehicle? If your comp and collision coverage in inexpensive, I'd say it's worth it. Your liability is probably most of your cost, your policy would tell you for certain.

Take the cost of your comp and collision and weigh it against the cost of the vehicle. If comp and collision is $200 a year for example, the cost benefit analysis is probably worth it. If comp and collision is costing you $2,000 a year, probably not worth it.

Best regards,

Elliot

 

[LostDollar]

I have a 2002 chevy tahoe, it has 175,000 miles, I just put all new suspension parts on it. It runs great and I could easily see it gong 400,000 miles. Would I be foolish to get full coverage insurance on it. It's value is in the $4000 range what is my best option? thank you

Caveat, I am NOT an agent.

It has been my experience that the insurance carrier I used for 50 years or so went "by the book". Year, mileage, accessories, general appearance -- totalling up to something like a "good", "better", "best" condition set that relates to some "book value". The fact that you just spent $2K to $4K on mechanical repairs probably would make no difference.

I have never had a vehicle situation like yours, if I did, I would just be driving it and hoping I did not have a serious accident because if I did, I would not be getting cash I'd put in the vehicle back out of it from insurance.

You can see what the agents say, but my opinion would be that full coverage would not be an economically effective strategy, if you have the money and it would make you feel better, then do it just for feeling better.

Good liability, towing coverage, and out of pocket for repairs is what I would do.

 

[hankster017]

Thank you for your reply, I was thinking pretty much like you. As much as Ii like this vehicle, if I wrecked it, they would automatically total it. A good insurance man would probably encourage the higher priced insurance. thanks for confirming what I thought was the best thing to do.

 

[adjusterjack]

When you own a car in the $4000 price range there is a lot to be said for self-insuring comprehensive and collision. You can save a lot of money over a long period of time. But you have to have money set aside to replace the car on a moment's notice when something happens to it and there is nobody else to pay for it.

It's what I have been doing for about 30 years. If my $4000 car gets destroyed or stolen I have the money set aside to replace it.

With the cost of insurance these days I'm not saving $200 per year. It's more like $200 every 6 months, maybe more.

 

[Elliot Becker]

Thank you for your reply, I was thinking pretty much like you. As much as Ii like this vehicle, if I wrecked it, they would automatically total it. A good insurance man would probably encourage the higher priced insurance. thanks for confirming what I thought was the best thing to do.

Hi Hank,

Special Agent Elliot Becker here again, a real, licensed insurance agent. Your agent encouraging the higher prices is probably right. I just wrote a policy on an old (mid-90s) Toyota Corolla for a customer. The comp and collision were $52.70 a year, the customer estimates the value of the vehicle at $3,500, the deductible is $500.

In that scenario, you're essentially making a decades long bet that your car won't get stolen or totaled when it could happen tomorrow.

You haven't confirmed anything because you never told us what the cost of your comp and collision coverage is.

Quite frankly Hank, I am wondering if you came here for real advice or if you just wanted someone to agree with your confirmation bias.

Lukewarm regards

-Elliot

 

[hankster017]

Elliot, I haven't said a price because I haven't inquired about it. I have another car and truck. I was looking for another opinion. You are right, its a bet on what may happen in the future. very good analogy thanks

 

[Allen Trent]

What state? some states you can collect from the at fault party. So, going without collision doesnt risk all potential accidents having no colision coverage. For instance, Michigan allows you to collect up to $3,000 from the at fault party for damages/deductibles to your car.

If worried more about theft or deer accident or windshield, you can put comprehensive coverage on, but either put no colision on it or limited collision where colision is only covered if you are not at fault, etc

Plus, some carriers may require you to have an inspection or pictures submitted if you want coverage for comp/collision on a 23 year old vehicle

 

[Elliot Becker]

Elliot, I haven't said a price because I haven't inquired about it. I have another car and truck. I was looking for another opinion. You are right, its a bet on what may happen in the future. very good analogy thanks

Hi Hank,

Happy to be of assistance. Make sure to get yourself a quality agent, don't buy from the little Gecko or the lady who hangs out on the sterile, lifeless environment.

-Special Agent in Charge, Elliot Becker

 

[marindependent]

Would I be foolish to get full coverage insurance on it.

We cannot tell you that without knowing the numbers here. Heck we dont even know what state you are in, let alone what you use the truck for? Silly insurance folks need to know all sorts of details to quote it out.

The numbers may show that a 19 year old driver using this vehicle as an Uber might have to pay a ton to insure it vs an 68 year old retiree that puts 2000 miles on it.

It's value is in the $4000 range

OK - well I would confirm that with Comps and maybe even your agent. The funny thing is most consumers think there auto is worth more than insurers often do.