I get where you’re coming from—dropping comp and collision can make sense, especially if the car’s value has dipped below what you’d pay in premiums over a couple years. But I’ve seen a few folks get burned by that approach, too. Had a client with an old Corolla, probably worth $3k on a good day. She figured it wasn’t worth keeping full coverage, so she dropped it and started her own “car fund” like you mentioned.
Fast forward six months, and a hailstorm rolls through. The car’s basically totaled—windows smashed, roof dented, the works. Her “fund” had maybe $400 in it at that point. She ended up scrambling for a replacement way sooner than planned. That’s the thing: sometimes those low-probability events hit at the worst possible time.
I totally agree liability is non-negotiable—no question there. But I usually tell people to run the numbers on their specific situation before dropping everything else. Sometimes comprehensive is surprisingly cheap, especially if you’ve got a clean record and live somewhere with lots of weather or theft risk. Even just keeping comp without collision can be a decent middle ground.
Not saying your way is wrong—it really does work for a lot of folks. Just think it’s worth weighing how much risk you’re actually comfortable taking on yourself versus what you’d rather hand off to the insurance company. Everyone’s got their own threshold for that kind of thing...
Yeah, that’s the kicker—those “it’ll never happen to me” moments have a way of showing up right when you least expect it. I’ve seen people drop comp thinking they’re saving a few bucks, then get hit with a freak hailstorm or a random break-in. Sometimes that $8/month looks pretty good in hindsight. It’s all about your risk tolerance, but man, weather doesn’t care how old your car is...
I get where you’re coming from, but I’m not totally sold on keeping comp forever, especially for older cars. Like, if your ride’s only worth a couple grand and your deductible is $500 or more, is it really worth paying that extra every month? At some point, the math just doesn’t add up, even if you factor in the “what ifs.” I mean, yeah, freak stuff happens—hail, break-ins, whatever—but sometimes you’re basically insuring yourself against a payout that wouldn’t even cover much after the deductible.
I had an old Civic that got sideswiped in a parking lot. Had comp at the time, but after the deductible and what they valued the car at, I barely got enough to make it worth the hassle. After that, I started thinking maybe it’s better to just stash what I’d pay for comp into a little “car emergency” fund instead. Not saying it’s for everyone, but for me, it made more sense once my car hit a certain age.
I do get nervous about weather though. Hail can be brutal and totally random. But then again, if you live somewhere it hardly ever hails or floods, maybe it’s not as big a risk? Guess it comes down to how much peace of mind is worth to you. For me, once my car’s value dropped below a certain point, I just couldn’t justify the extra coverage anymore... but I still double-check the forecast before parking outside for long stretches.
I started thinking maybe it’s better to just stash what I’d pay for comp into a little “car emergency” fund instead.
That’s actually a solid approach, especially if you’re comfortable with risk. I’ve had a couple of claims denied or barely paid out because my car’s value tanked faster than I thought. One thing I always do now is check the actual cash value on sites like KBB before renewal—sometimes the numbers are way off from what you expect. But here’s something I wonder: if you’re considered high-risk by insurers (like me, thanks to a few tickets), does dropping comp make sense, or does it actually save less than you’d think? Curious if anyone’s run the numbers after getting bumped into a higher risk bracket...
Honestly, I get the logic behind just setting aside the comp premium as an emergency fund, but there’s a catch if you’re high-risk. Comp rates don’t always jump as much as collision or liability after tickets or accidents—sometimes they barely budge, since comp covers stuff like theft or weather, not your driving habits. I’ve seen folks drop comp thinking it’ll save a ton, but when they actually compare the numbers, the savings are underwhelming. Plus, if you live somewhere with lots of theft or hail, that emergency fund might not stretch as far as you hope. It’s worth running the numbers both ways before making the call.
