At what value do you drop the voluntary insurance on your car?

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worth about 3k

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only has about 80k miles

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What the frick?

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lifestyle changes because of COVID.

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Explain?

I feel like ive driven more over the last year

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no way you save

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Why not? Years ago, I dropped to liability only on my old truck and I paid $30/month until I sold it.

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worth about 3k
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only has about 80k miles


What the frick?

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It's a 14 year old car

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worth about 3k
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only has about 80k miles

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What kind of car?

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Why not?

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cause comp and collision on a vehicle is not near half the cost of his insurance cost on a 3k vehicle. I'm guess maybe he saves $25-$30 a mo

When average expected repair + deductible => 50% of car value, drop the insurance.

Can you afford to buy a new car if you total this one?

That's how I view insurance. It's not a financial benefit analysis but rather how much am I willing to pay to avoid a major hardship in my life. Comfort, stability and peace of mind have a value to me.

I drove a beat up Honda for 10 years without any collision coverage. But I knew I had plenty of cash in my account to go buy another one any time I wanted.

Right now I'm driving a 14 year old vehicle with 135k miles and KBB around $7k. I recently paid my 6 month premium but next payment cycle I think I'm going to drop collision.

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You need to evaluate your personal liability before you do anything. Basically, if you are in an at fault accident, what are you worried about Gordon coming after? House, camp, other vehicles, etc...

In your case, nothing wrong with carrying just the liability coverages, but you need to make sure the limit you do carry can cover your arse in a bind

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I carry about 50/100 bodily injury liability
50 on property damage
The maximum uninsured motorist insurance

For my car I carry a $500 deductible on collision and comprehensive. If I drop both of these I'd save about $400 a year. So if my car is worth about 3k and going down continuously, even if it held value It'd take about 6 years for it to "pay for itself" in terms of the savings to make up that $2500 gap that I'm currently insured for. The odds though are that almost any accident going forward will likely total the car and just result in me getting a few thousand dollars for a down payment on a newer car.

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At what point is a good point to just drop anything but the minimum required coverage?

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Dropping to the state minimum on liability is probably not a great idea regardless of the car’s value. I would also keep uninsured driver coverage if you have it, just for the peace of mind.

If you mean keeping your current liability coverage and dropping any collision/comprehensive - I’d say it depends on your personal situation.

It comes down to whether you can afford to repair or replace the car in the event of an accident. If it’s no big deal for you to come up with a couple of grand to pay for repairs, or as a down payment if you need to replace it, then you probably aren’t gaining much by keeping the full coverage. OTOH, if that would be a serious financial strain you might want to keep the coverage until your rainy day fund is a little bigger.

Also - if the car is only worth $3k, there’s a good chance that both of the following are true:
1. Any minor cosmetic repairs might not matter to you, meaning you might be able to live with dents/scratches/etc. or at least cheap repairs without new paint.
2. Any major damage could easily result in the car getting totaled out anyway - in which case you’re probably going to be out of pocket to some extent regardless unless you plan on buying another car for $3k.

Personally I would drop the full coverage unless it’s only like $20/month or something.