When Does It Make Sense to Drop the “All-In” Coverage?

WHEN DOES IT MAKE SENSE TO DROP THE “ALL-IN” COVERAGE?

Yeah, I’ve wrestled with this a lot too. My last car was a mid-2000s Toyota—nothing fancy, but it had sentimental value, so I kept the comprehensive for way longer than most would. Honestly, the peace of mind is hard to put a price on, but at some point, the math just stops making sense.

I had one claim years back (hailstorm took out my windshield and hood), and after my deductible, the payout barely covered half the repair cost. It felt like I was doing all that paperwork for a couple hundred bucks. Since then, I’ve been more skeptical about what “full coverage” really gets me once my car’s not worth much anymore.

I do think it depends on where you live and how you drive. If you park on the street in a city, maybe it’s worth hanging onto longer. Out in the burbs or if you’ve got a garage, probably less so. And yeah, those depreciation numbers are brutal—insurance companies seem to find every excuse to lowball you when it comes time to pay up.

At a certain point, I realized I was paying nearly 20% of my car’s value every year just for comp/collision. Once I saw that number, it felt like lighting money on fire. Dropped down to liability only and haven’t looked back... but every now and then I get that nagging “what if” feeling.

Guess it comes down to how much risk you can stomach vs. what you’re actually getting back. For me, once the payout wouldn’t even cover a decent used replacement, that was the tipping point.

Totally get where you’re coming from. That “what if” feeling never really disappears, does it? I hung onto full coverage for ages too, mostly because I’m a worrier and like knowing I’m covered for the unexpected. But you nailed it—once the premiums start creeping up to a big chunk of your car’s value, it just doesn’t add up anymore.

- Peace of mind is great, but not if it’s costing you more than you’d ever get back.
- If you’re a careful driver and your car isn’t worth much, liability usually makes sense.
- Having a garage or living in a low-risk area helps tip the scales.

You made a smart call. It’s all about balancing risk and what you’re comfortable with. No shame in wanting that extra security for a while, though.

I hear you on the “what if” worries. I kept full coverage on my old ‘89 Mustang way longer than I needed to, mostly because I’d sunk so much time into restoring it. But honestly,

“once the premiums start creeping up to a big chunk of your car’s value, it just doesn’t add up anymore.”

I get the hesitation—my old Civic was worth maybe $2k, but I was paying almost $700 a year for full coverage. At some point, it just felt like throwing money away. Still, I double-checked my emergency fund before dropping it... just in case.

Honestly, once your car’s value drops below a certain point—like $2k—it’s tough to justify paying for full coverage. The payout after a claim might barely cover the premium you’ve shelled out. Still, I always tell folks to think about their risk tolerance. If you can handle replacing the car out of pocket, liability-only makes sense. But if losing it would put you in a bind, keeping some coverage isn’t the worst idea. It’s all about what helps you sleep at night.