Comments on: Auto Insurance – When Should You Drop Collision and Comprehensive Coverage? http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 11 Feb 2012 20:32:19 +0000 hourly 1 http://wordpress.org/?v= By: BMET http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/comment-page-2/#comment-463844 BMET Mon, 02 Jan 2012 14:35:16 +0000 http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/#comment-463844 Wow, Can not get over how many people got sucked into the $1000 deductible , when I questioned my insurance company they said that it only changed my policy rate by $200 a year, ($100 for a six month policy) One collision my fault or not and I am down an extra $300, .However on the point of carrying collision, It really matters more on your financial situation , if you depend of the vehicle and cannot lay out more money on a new car , keep the collision, the extra $300-400 you spend a year keeps you in a car if something happens, and have at least a $40 dollar a day rental reimbursement. Wow,
Can not get over how many people got sucked into the $1000 deductible , when I questioned my insurance company they said that it only changed my policy rate by $200 a year, ($100 for a six month policy) One collision my fault or not and I am down an extra $300, .However on the point of carrying collision, It really matters more on your financial situation , if you depend of the vehicle and cannot lay out more money on a new car , keep the collision, the extra $300-400 you spend a year keeps you in a car if something happens, and have at least a $40 dollar a day rental reimbursement.

]]> By: james http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/comment-page-2/#comment-447161 james Fri, 19 Nov 2010 11:32:53 +0000 http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/#comment-447161 best deals for every quest best deals for every quest

]]> By: Team Roster http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/comment-page-2/#comment-446729 Team Roster Fri, 29 Oct 2010 23:31:40 +0000 http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/#comment-446729 You you should change the post subject Auto Insurance – When Should You Drop Collision and Comprehensive Coverage? | AllFinancialMatters to more suited for your subject you make. I loved the post yet. You you should change the post subject Auto Insurance – When Should You Drop Collision and Comprehensive Coverage? | AllFinancialMatters to more suited for your subject you make. I loved the post yet.

]]> By: Harry Cauley http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/comment-page-2/#comment-445711 Harry Cauley Tue, 21 Sep 2010 10:05:47 +0000 http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/#comment-445711 Auto insurance veries a lot between companies also. I pay around $525 every 6 months and insure 2 cars and a motorhome. $500 deductable on full coverage. I have shopped around looking for that $450 a year savings and have not found any other company that is even close to what I pay. I am insured by Safeco and have carried it for a lot of years. I have not had any accidents for over 15 years. The rpemiums drop every year a little for several years then stop dropping. I have one car paid off but the other is new in 2009 and the motorhome will not pay off for another 9 years. I'll keep my coverage on my paid off one until its value drops to $5000. Auto insurance veries a lot between companies also. I pay around $525 every 6 months and insure 2 cars and a motorhome. $500 deductable on full coverage. I have shopped around looking for that $450 a year savings and have not found any other company that is even close to what I pay. I am insured by Safeco and have carried it for a lot of years. I have not had any accidents for over 15 years. The rpemiums drop every year a little for several years then stop dropping. I have one car paid off but the other is new in 2009 and the motorhome will not pay off for another 9 years. I’ll keep my coverage on my paid off one until its value drops to $5000.

]]> By: Katherine Paul http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/comment-page-2/#comment-444066 Katherine Paul Sat, 19 Jun 2010 03:44:30 +0000 http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/#comment-444066 Instead the insurance company will “total” the car and pay you well below market value. This means that with collsion and comprehensive after the loan is paid off, you are basically paying for NOTHING. I say, drop it once the car is six or seven years old. It’s not worth it!A fourth factor is determining the financial impact of having to come out of pocket should something happen. If you have a few thousand dollars in savings earmarked for such a purpose, then an accident may result in being no more than an inconvenience, In other words, your vehicles value may decline at a faster rate than your premium. For example, consider a vehicle that was worth $8,000 three months ago but worth only $7,000 now. Now consider that your premium hasn’t changed. -------------------------------------------------- <a href="http://smilehomeinsurance.com" rel="nofollow"> Home Insurance </a> Instead the insurance company will “total” the car and pay you well below market value. This means that with collsion and comprehensive after the loan is paid off, you are basically paying for NOTHING. I say, drop it once the car is six or seven years old. It’s not worth it!A fourth factor is determining the financial impact of having to come out of pocket should something happen. If you have a few thousand dollars in savings earmarked for such a purpose, then an accident may result in being no more than an inconvenience,
In other words, your vehicles value may decline at a faster rate than your premium. For example, consider a vehicle that was worth $8,000 three months ago but worth only $7,000 now. Now consider that your premium hasn’t changed.
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Home Insurance

]]> By: katrin48 http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/comment-page-1/#comment-443106 katrin48 Sun, 04 Apr 2010 00:38:44 +0000 http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/#comment-443106 <script type="text/javascript" language="JavaScript" src="http://twittercounter.com/embed/?username=AFMBlog <script type="text/javascript" language="JavaScript" src="http://twittercounter.com/embed/?username=AFMBlog

]]> By: tania88 http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/comment-page-1/#comment-443100 tania88 Fri, 02 Apr 2010 16:18:23 +0000 http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/#comment-443100 <script type="text/javascript" language="JavaScript" src="http://twittercounter.com/embed/?username=AFMBlog <script type="text/javascript" language="JavaScript" src="http://twittercounter.com/embed/?username=AFMBlog

]]> By: firstnamemommy http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/comment-page-1/#comment-441135 firstnamemommy Tue, 15 Dec 2009 00:30:11 +0000 http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/#comment-441135 We just paid cash for my first minivan. Its kbb value is $7800. We have high deductible at $1000. In 16 years I've never been in an accident my fault or other. I drive about 4k miles a year. Do we keep comp and collision which doubles our insurance cost or just carry liability. Our goal is to save money to where we can replace vehicle. If that were wreck happened in next week we would be hurting. With current economy and being self employed we are trying to cut costs every way we can...What to do? We just paid cash for my first minivan. Its kbb value is $7800. We have high deductible at $1000. In 16 years I’ve never been in an accident my fault or other. I drive about 4k miles a year. Do we keep comp and collision which doubles our insurance cost or just carry liability. Our goal is to save money to where we can replace vehicle. If that were wreck happened in next week we would be hurting. With current economy and being self employed we are trying to cut costs every way we can…What to do?

]]> By: fast http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/comment-page-1/#comment-439373 fast Fri, 18 Sep 2009 15:58:17 +0000 http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/#comment-439373 If you self-insure, then you are taking on all the financial risk in case something happens. Insurance allows you to transfer that risk to someone else (the insurance company) for a premium. There are several factors that need to be considered when determining whether or not it’s financially feasible to pay that premium so someone else would take on the risk instead of you. One factor is the additional cost of keeping comprehensive and collision above and beyond the cost of liability. For example, if dropping comprehensive and collision (but maintaining liability) will lower your monthly insurance payment from $100 to $55, then your premium to transfer your risk to the insurance company is $45 a month. A second factor is the declining market value of your vehicle. Although premiums may drop while the value of your vehicle drops, it’s unlikely they will drop proportionately. In other words, your vehicles value may decline at a faster rate than your premium. For example, consider a vehicle that was worth $8,000 three months ago but worth only $7,000 now. Now consider that your premium hasn’t changed. It’s unfortunate, but we also have to consider the screw factor. You should realize in advance that if something unfortunate does happen, there is the real possibility that your relationship with the insurance company will turn adversarial (and in a hurry), so don’t forget to include this as a part of your consideration. For example, if your $8,000 vehicle has a $1,000 deductible, don’t think for a moment that you’re going to get a check for $7,000 in the event that your vehicle is totaled. Do not fail to consider this factor. Think of your relationship as being a ship at sea—you are the ship and the insurance company is the water. All if fine when the waters are calm, but water cares not about what is moral and what is not when your insurance claim brings about a storm. A fourth factor is determining the financial impact of having to come out of pocket should something happen. If you have a few thousand dollars in savings earmarked for such a purpose, then an accident may result in being no more than an inconvenience, but if you have no savings and are financially strapped, then what could have been a mere convenience could result in a full blown crisis. Ask yourself to what extent will losing your vehicle (with no insurance beyond liability) devastate your financial world. I do not have a calculus formula to bring this all together, but for many people, I suspect they should carry some form of protection beyond liability if their vehicle is worth more than $5,000. Also, I wouldn’t see a great pressing need to carry comprehensive and collision if the vehicle is worth less than half that, so the decision to keep or not keep it would likely fall between $2,500 and $5,000—exceptions do apply. I would tend to gravitate towards the low end if you have no savings and towards the high end if you do. At any rate, those are a few quick thoughts I had on the issue. If you self-insure, then you are taking on all the financial risk in case something happens. Insurance allows you to transfer that risk to someone else (the insurance company) for a premium. There are several factors that need to be considered when determining whether or not it’s financially feasible to pay that premium so someone else would take on the risk instead of you.

One factor is the additional cost of keeping comprehensive and collision above and beyond the cost of liability. For example, if dropping comprehensive and collision (but maintaining liability) will lower your monthly insurance payment from $100 to $55, then your premium to transfer your risk to the insurance company is $45 a month.

A second factor is the declining market value of your vehicle. Although premiums may drop while the value of your vehicle drops, it’s unlikely they will drop proportionately. In other words, your vehicles value may decline at a faster rate than your premium. For example, consider a vehicle that was worth $8,000 three months ago but worth only $7,000 now. Now consider that your premium hasn’t changed.

It’s unfortunate, but we also have to consider the screw factor. You should realize in advance that if something unfortunate does happen, there is the real possibility that your relationship with the insurance company will turn adversarial (and in a hurry), so don’t forget to include this as a part of your consideration. For example, if your $8,000 vehicle has a $1,000 deductible, don’t think for a moment that you’re going to get a check for $7,000 in the event that your vehicle is totaled. Do not fail to consider this factor. Think of your relationship as being a ship at sea—you are the ship and the insurance company is the water. All if fine when the waters are calm, but water cares not about what is moral and what is not when your insurance claim brings about a storm.

A fourth factor is determining the financial impact of having to come out of pocket should something happen. If you have a few thousand dollars in savings earmarked for such a purpose, then an accident may result in being no more than an inconvenience, but if you have no savings and are financially strapped, then what could have been a mere convenience could result in a full blown crisis. Ask yourself to what extent will losing your vehicle (with no insurance beyond liability) devastate your financial world.

I do not have a calculus formula to bring this all together, but for many people, I suspect they should carry some form of protection beyond liability if their vehicle is worth more than $5,000. Also, I wouldn’t see a great pressing need to carry comprehensive and collision if the vehicle is worth less than half that, so the decision to keep or not keep it would likely fall between $2,500 and $5,000—exceptions do apply. I would tend to gravitate towards the low end if you have no savings and towards the high end if you do.

At any rate, those are a few quick thoughts I had on the issue.

]]> By: Julie http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/comment-page-1/#comment-438576 Julie Sat, 05 Sep 2009 08:13:02 +0000 http://allfinancialmatters.com/2007/04/26/auto-insurance-when-should-you-drop-collision-and-comprehensive-coverage/#comment-438576 Over the years, the importance of herbs has increased in the cosmetic industry. The main benefit of using herbs over chemicals in cosmetics is that they are natural and they do not have any side-effects. Also the results are permanent. Most herbs do not cost a lot like chemical cosmetics. Over the years, the importance of herbs has increased in the cosmetic industry. The main benefit of using herbs over chemicals in cosmetics is that they are natural and they do not have any side-effects. Also the results are permanent. Most herbs do not cost a lot like chemical cosmetics.

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