Is it a bad idea to keep collision insurance on a car worth less than $3000?

Question

Its a 1996 Buick Regal Coupe.Its mechanically sound and only has 75,000 miles.Its a nice car to drive.My state you don't have to carry collision,just liability.Maybe its that way in all states,I don't know.

Answer 1

I usually tell my insureds if you don't have the money to replace the vehicle if it is totalled out, keep full coverage on it. If you can afford a new vehicle, then drop it. I personally have a 1996 Grand Prix that I keep full coverage on simply because, if it is totalled I would rather get something from the insurance company to put a down payment on a new car than absolutely nothing. Also, if you are hit by an uninsured driver, most states do not have property damage coverage under the uninsured driver portion of your insurance.

Answer 2

That's the way in all states, and carrying collision on a car worth $3,000 doesn't make much sense. First off with the normal deductible they won't cover much on that car. I don't know what you're paying per year for collision but if your car is totalled you won't get anywhere near $3,000 for it. Better to put that payment in savings for a few years and use it as a downpayment when you decide to replace the car.

Answer 3

Personally $3000, or less value is where I draw the line. Drop collision coverage or change to a high deductible to reduce the rate. I had a '97 Sebring Conv. recently with no collision coverage.

Answer 4

I wouldn't keep collision on a car that was worth that much or that little. If the car is worth less than what it would cost to repair it or if the insurance carrier would offer you more to salvage the car than if you got it repaired then consider it a waste of money for that part of insurance.

Just go with general liability for coverage. It covers anything that you caused to others while driving the car.

Answer 5

It all depends on one simple question. Can you afford to cough up another $3,000 if you crash and total your car ( to replace it )? If you can't, then get collision insurance and get piece of mind. It really only ends up being a few hundred dollars extra to add collision coverage to your policy, versus having to cough up the entire price out of pocket to replace your vehicle if you don't have the coverage.

Answer 6

If the car was stolen, never came back, if it was torched, if a massive tree crushed it in a windstorm, could you reach into your pocket and replace it tomorrow? If not, keep comprehensive coverage on it.
If you went off the road into the ditch and hit a culvert, writing off your car, if you had a blow-out on a curve and rolled your car, could you reach into your pocket and replace it tomorrow? If not, keep collision coverage on it. (and uninsured motorist coverage in case it is wrecked in a collision with a motorist with no insurance)
So many people think you should pull coverage off when a car reaches a certain age, then they write YA saying they had their car wrecked, no insurance, "help, how can I make them pay".

Answer 7

i would would keep the car insured you never know what kind of accident you might have