Makes sense, honestly. I’ve been crunching numbers for my own car, and it’s wild how fast those premiums add up compared to what the car’s actually worth. If your deductible plus annual comp is close to the value, it’s kinda like paying for peace of mind you might never use... I guess at some point, you just gotta weigh your risk tolerance and maybe stash that extra cash for repairs instead.
Totally get what you mean. I did the math on my 12-year-old sedan and realized I’d basically be paying the car’s value in premiums over two years. At that point, is it insurance or just a very expensive magic trick? I ended up dropping comp and collision, but I keep a “car repair piggy bank” now. Ever notice how as soon as you drop coverage, your car suddenly starts acting suspiciously well-behaved though...?
That “car repair piggy bank” approach is actually pretty practical for older vehicles. Once the annual cost of comp and collision gets close to the car’s value, it’s usually time to reconsider. Just make sure you’re comfortable covering a total loss out of pocket if something unexpected happens. Funny how cars behave when you’re not paying extra to protect them, right?
- Totally agree, that “piggy bank” method can make a lot of sense once your car’s value drops.
- A couple things I always ask folks to think about:
- Are you in an area with lots of uninsured drivers? That can change the math a bit.
- How’s your emergency fund looking? If you’d be scrambling to replace the car, maybe keep comp/collision a bit longer.
- Funny thing, I’ve seen people drop coverage and suddenly their car starts acting up... Murphy’s Law, right?
- Also, some lenders still require full coverage if you’re financing, so that’s another wrinkle.
- At the end of the day, it’s about your risk tolerance and what helps you sleep at night.
Yeah, you nailed it with the emergency fund point. If you’re gonna be sweating bullets every time you park somewhere sketchy, maybe hang onto that coverage a bit longer. I dropped comp/collision on my old Civic once it was worth less than my annual premium, but I had cash set aside just in case. Honestly, if you’re still making payments, it’s not even a choice—lender calls the shots. But if you own it outright and can stomach the risk, why pay for coverage that won’t really help you out? Just gotta be honest with yourself about your comfort level.
