Cancelling Collision Coverage?

billybob · #1 (**permalink**) 04-25-2006, 06:51 AM

Do you think I should cancel collision coverage on my car?
Right now, it is costing me about $17/month for collision with a $1,000 deductible.
My car is probably only worth about $2500.
I drive the car VERY rarely- probably no more than 3-4 times a month.
I haven't been in an accident that was my fault in over 10 years.
Let me know your thoughts!
Thanks

Fern · #2 (**permalink**) 04-25-2006, 07:23 AM

I have a 99 honda civic with just 75k miles. i cancelled my collission and comprehensive (you can do both at same time) and i save well over $100 a year. i work a 1/2 mile from home. So definitely go for it. and drive carefully!

What are you waiting for?

RJB1180 · #3 (**permalink**) 04-25-2006, 07:51 AM

Just remember that State law is different in many states, and cancelling the coverage to save a buck can hurt you if that is your only vehicle. If you follow thru at least put the savings in a dedicated car savings account or else you may be SOL, later

Pennywise, # foolish??

billybob · #4 (**permalink**) 04-25-2006, 08:24 AM

I'd like to keep the comprehensive, as i live in the city, in case the car is stolen or vandalized. But since I drive so infrequently (I also have a motorcycle), and the cars value is so low (only 1500 once you subtract the deductable...) It's a 94 accord, with about 140k miles on it...

sweeps · #5 (**permalink**) 04-25-2006, 08:28 AM

RJB, I agree with you on state law affecting liability coverage, but how would it affect the decision on collision and comprehensive?

billybob, on the surface, it sounds like you should drop the coverage. Keep in mind you're only getting $1500 in coverage (after deductible). Unfortunately these decisions are not just financial -- will you be a nervous wreck (pardon the pun) if you drop the coverage?

billybob · #6 (**permalink**) 04-25-2006, 08:40 AM

nah- i mean it will suck if i do get in an accident thats my fault, but realistically, I can self-insure for that i suppose...
I mean I'll be saving 200/year if i drop the coverage, which seems good to me. And as i live in the city, while i do enjoy having a car, I'm sure I could get by without it for a while, esp. since i also have the motorcycle.

PRICEPLUS · #7 (**permalink**) 04-25-2006, 01:23 PM

Cancel. The insurance will pay book value and you are spending almost 10% of value after deductible. My .02 cents.

FrugalDiva · #8 (**permalink**) 04-26-2006, 03:17 PM

We cancelled our collision as well, our deductible was $250 and it's hardly ever driven so we took it off saving us $110 every 6 months.

PRICEPLUS · #9 (**permalink**) 04-28-2006, 07:50 PM

billybob,

Just curious. What did you end up doing!

billybob · #10 (**permalink**) 05-01-2006, 09:01 AM

I cancelled it for a savings of $17/month. Feel good about it!

Ima saver · #11 (**permalink**) 05-01-2006, 09:36 AM

Now save that $17 a month, put it in a savings account!!