The last time I called in to our insurance company, they offered to do an insurance review to see if there was a way for us to save money. When it came to car insurance, they pointed out that I could save quite a bit by dropping comprehensive and collision on my car.
Even if I just drop collision, I could save about $340 per year.
There are all kinds of reasons to go ahead and drop collision, but I’m reluctant to pull the trigger without doing further investigation.
According to KBB, My car is probably worth about $1300. (I could probably get $1500 for it because it is a popular car, but of course the insurance company wouldn’t base the value on that.)
My current deductible is $300, and my current annual car insurance cost is about $1382. (That’s with my newly licensed teenage son listed on the car as well.)
Essentially this means that if we were to hit something, my car would probably be totaled if the repair cost more than $650. The last time someone tapped my car on the bumper, the repair was about $500, so it wouldn’t take much at all for it to be totaled.
LOGIC says that if we can avoid hitting something for 3 years, it’s worth it to drop collision.
Replacing a $1300 car is not a problem for me, but emotionally I feel like dropping the collision coverage is tempting fate. Silly, I know, but there you have it.
Have you made a similar type of decision? How did you handle it?