by Guest » Tue Jun 05, 2012 01:07 pm
I have got the basic comprehensive and collision coverage for my car. Its a bit old. Now since I want to cut down on the costs, can I drop the comprehensive coverage? It hasn't yet been of much use to me yet. Moreover, I store my vehicle in a safe garage.
Posted: Tue Jun 05, 2012 11:19 pm Post Subject: if you know what you mean ...
You sure can drop that coverage if you know what it entails ... For example, if a dear hits your car, god forbidden, you are on your own. If that possibility is near zero, just drop it
Posted: Tue Jun 05, 2012 11:44 pm Post Subject:
You'll have to talk with your agent/insurer. Most carriers will allow an insured to carry comprehensive (usually referred to as "other than collision" coverage these days) and NOT carry collision, but not the other way around. Most will require, that if you want collision coverage, you must also carry the other than collision coverage.
I would also like to speak to this statement:
You sure can drop that coverage if you know what it entails ... For example, if a dear hits your car, god forbidden, you are on your own. If that possibility is near zero, just drop it
First off, I think she meant a "deer" and not a "dear." Minor issue. Other than collision coverage pays for LOTS of things, like fire, theft, vandalism, glass breakage and hitting an animal, bird or fish and a few other things. It's usually quite inexpensive in terms of premium. Dropping the collision coverage may be a good idea if the premium cost outweighs the potential benefit. But the comprehensive coverage is cheeeeeap... usually just a few dollars a month. I would keep that coverage and possibly dump the collision coverage.
InsTeacher 8)
Posted: Mon Jun 11, 2012 10:32 pm Post Subject:
It would not be a great idea to drop comprehensive coverage altogether. Instead of doing so, you can look for other ways to reduce the cost of your car insurance coverage.
Posted: Tue Jun 12, 2012 12:23 pm Post Subject:
It would not be a great idea to drop comprehensive coverage altogether. Instead of doing so, you can look for other ways to reduce the cost of your car insurance coverage.
Such as?
Please do not take EmilySmith's posts too seriously. I doubt that she is a licensed insurance producer and her knowledge is flawed.
Posted: Tue Jun 12, 2012 02:09 pm Post Subject:
A higher deductible on both collision and comprehensive would probably be more cost effective.
Posted: Wed Jun 13, 2012 04:21 am Post Subject:
Raising deductibles from $500 to $1000 does not decrease the cost of insurance by $500/year. It may lower the cost of insurance some, but it significantly increases the out of pocket expense in the event of a collision or other than collision loss. One has to look at the economics of that trade off to decide whether there is value or not.
In my own CA auto policy, increasing the deductible from its present $500 to $1000 (on two vehicles) would save me $85 every 6 months (a bit more than 12% of my premium). I would have to be claim-free for three years to save the $500 one event would cost. Personally, I have been claim-free for many years, but my wife's Hyundai So nata was battered by remnants of a truck tire last December, causing about $1400 worth of damage. We gladly paid the $500 deductible -- it would have been painful to pay $1000 and leave just $400 for the insurance company to cover.
Posted: Wed Jun 13, 2012 09:34 pm Post Subject:
Thanks MaxHerr. It's really informative what you've shared.
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