When to cancel collision insurance

[m.f.walters]

I have a 2001 Honda CRV, 125,000 miles, with Blue Book value of $5700. My 18 year old college student daughter uses this car. I am looking for ways to reduce my auto insurance, since I'm adding my almost 16 year old daughter to our policies next month.
The collision insurance on the crv is $410 a year, with a $1000 deductible. When does it make sense to drop collision coverage?

[Smelly_Cat]

My insurance Company will work run the numbers for me when I ask them .

what if you raise the deductible , drop collision drop some option, etc.

I'd probaly keep the collision if its worth 5K,

Oh Ya, As long as the teen driver does not have their own car, the rate was not too bad. When I had 4 drivers and 4 cars it was high. 3 cars and 4 drivers was alot less.
SC

[cooliemae]

Just to clarify your talking about collision insurance. I ask because it sounds like you're talking about comprehensive

[maat55]

You know your daughter and the conditions she will be driving in better than anyone. I would be more concerned about having sufficient liability. As the father of two daughters, we carried liability for their cars.

[cooliemae]

Liability, that's what I was thinking of as opposed to collision.

[Alex_Adviser]

Cancel your collision insurance if your car is very old (worth less than $1,000). A good rule of thumb is to cancel your collision insurance when your car is ten years old and worth little more than your deductible.

Regards

[m.f.walters]

Cancel your collision insurance if your car is very old (worth less than $1,000). A good rule of thumb is to cancel your collision insurance when your car is ten years old and worth little more than your deductible.

Regards

Thanks, everyone. I knew there was a good rule of thumb-just couldn't remember it. We have lots of liability- I'm a big believer in that. Just didn't want to waste money on collision-sounds like I'll have to look for savings elsewhere.

[noppenbd]

The rule of thumb I have heard is to cancel it when the annual cost of the collision portion exceeds 10% of the amount you could return in a total loss (vehicle value minus deductible). In this case you are not there yet, so maybe take a look at it again in a year or two when the value has dropped a bit more.