How old should a car be b4 not carrying collision on your auto insurance policy?
2006-11-17 05:27:26 · 5 answers · asked by Anonymous in Cars & Transportation ➔ Insurance & Registration
Usually when the value of the vehicle does not make it cost effective to carry the coverage. Usually if your car is 6-7 years old or older (provided you keep it that long) it's not cost effective. The only time that I would say keep it longer than that is if you cannot afford to buy another vehicle and if it were totalled you would need the proceeds of a settlement to put money down on a new car. But in general about 6-7 years old. If you have a lienholder obviously you must keep physical damage coverage until it is paid off.
2006-11-17 09:02:00 · answer #1 · answered by Chris 5 · 1⤊ 0⤋
Run the numbers. You would not want collision with a $500 deductible on a vehicle worth $500 or less. Once you own it free and clear and there is not financial institution insisting you have full coverage, it's up to you. If you ran into a tree tomorrow, could you walk away from it and replace it out of pocket? If yes, drop collision.
2006-11-17 06:07:02 · answer #2 · answered by oklatom 7 · 0⤊ 0⤋
When its value becomes so low that the settlement from a claim would be too low to buy a satisfactory replacement. If the car is damaged, the insurers may declare it a total loss, give you a check for its market value, and walk away; you are then stuck with the choice of trying to find another car for the pittance they pay or to have the old one fixed at a cost of more than the check. This is unfortunate for me; I just wiped out a deer and did not have comprehensive, so the repairs will be out of my pocket.
2006-11-17 05:39:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You would have to think of the resale value of it in its present condition. You can find this by going to kbb.com and finding your make and model and determining the condition - Excellent, Good, Fair, Poor as well as number of miles on it. This will tell you what it is likely worth as is. If that amount is low then you could drop collision and have only liability. Good Luck!
2006-11-17 05:34:27 · answer #4 · answered by stklotto 4 · 0⤊ 0⤋
When it becomes worth less than the cost of the insurance. At that point drop the coverage and continue to pay the coverage premium to yourself. Then it will be there when you need it and you will draw interest on it.
2006-11-17 05:32:32 · answer #5 · answered by Letsee 4 · 0⤊ 0⤋