Car insurance

[asmom]

Is there some sort of formula you can use to determine when it no longer makes economic sense to carry full coverage on your car? I paid off my 2005 Jeep almost 3 years ago but I've maintained full coverage since. According to KBB, it's only worth about $6500 max.

Here are the variables:

• My 17-year old daughter is also a driver.
• I just paid $2500 to get a new transmission. Otherwise no mechanical issues.
• It has ~120,00 miles on it.
• Current cost of insurance is $1250 per year.

Thanks for any suggestions.

[disneysteve]

I believe the rule of thumb is to drop collision coverage when the premium exceeds 10% of the car's value. Of course, if you do that, you need to be prepared for the consequences. Can you afford to repair or replace the car out of pocket if it gets damaged or totaled?

You need to look at just the cost of the collision coverage, not the overall cost.

[asmom]

I believe the rule of thumb is to drop collision coverage when the premium exceeds 10% of the car's value. Of course, if you do that, you need to be prepared for the consequences. Can you afford to repair or replace the car out of pocket if it gets damaged or totaled?

You need to look at just the cost of the collision coverage, not the overall cost.

Thanks. I am definitely over the 10% rule of thumb. As for replacing the car, I have the money to replace a similarly valued car but it would be a big chunk of my EF. Hmmm....

[jpg7n16]

Thanks. I am definitely over the 10% rule of thumb. As for replacing the car, I have the money to replace a similarly valued car but it would be a big chunk of my EF. Hmmm....

Just to make sure we're on the same page- if you dropped the collision coverage only, and kept liability, etc. - you would save over $650?