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

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.

I hear you on the “comfort level” thing. I kept full coverage on my old Corolla way longer than most people probably would’ve, just because I drive through some pretty questionable neighborhoods for work. Had a buddy who dropped his coverage as soon as his car was paid off, but two months later some guy sideswiped him in a parking lot and took off. He was kicking himself for not having comp/collision - ended up shelling out more than he saved.

I think it really comes down to where you park and how much you rely on your car. If you’re like me and your car is basically your second home (hello, endless traffic), losing it would be a nightmare. I’d rather pay a bit more for peace of mind than gamble with my ride. But yeah, once your annual premium is creeping up on your car’s value, it gets tough to justify. Still, I’m not brave enough to roll the dice just yet… maybe one day.

Man, I totally get where you’re coming from. I’ve had the same debate with myself every time my car hits another “milestone” birthday. My Outback’s pushing 200k miles, and I still keep full coverage on it, mostly because I’m always out on the road - sometimes in the middle of nowhere, sometimes in sketchy parking lots at trailheads. It’s not even about the car’s value at this point; it’s more about not wanting to deal with a huge headache if something happens far from home.

One time, I was camping upstate and came back to find a nice new dent in my rear quarter panel. No note, nothing. If I’d dropped comp/collision, that would’ve been all on me. Instead, insurance covered most of it (minus the deductible), and I was back on the road in a couple days. That peace of mind is hard to put a price on when you’re relying on your car for everything from work to weekend escapes.

But yeah, there’s definitely a point where it starts to feel silly paying almost as much for insurance as your car’s worth. I’ve got friends who swear by just carrying liability once their cars hit a certain age or value, but honestly? I’m not sure I’ll ever be that chill about it. Maybe if my commute was just down the street or if I didn’t have to park in random places all the time... but for now, I’d rather pay up than risk being stranded or out a few grand.

Curious - do you ever factor in how much you drive or where you go when you’re deciding? Or is it more about just feeling secure no matter what? For me, it’s definitely tied to how much my car is part of my daily life. If it disappeared tomorrow, I’d be scrambling big time.

Honestly, I get the peace of mind thing, but at a certain point it just doesn’t add up for me. Like you said,

“there’s definitely a point where it starts to feel silly paying almost as much for insurance as your car’s worth.”

Honestly, I’ve been thinking the same thing. It’s wild how fast those premiums add up, especially when your car isn’t worth much anymore. I get wanting to play it safe, but sometimes it just feels like throwing money away. Your “car fund” idea actually makes a lot of sense to me.

Your “car fund” idea actually makes a lot of sense to me.

I’ve done something similar for years. Once my car hit about 10 years old, I dropped comprehensive and collision. The math just didn’t add up anymore. Instead, I started setting aside what I would’ve paid in premiums - turns out, it grows faster than you’d think. That said, liability is still non-negotiable for me. It’s just not worth the risk to go without it, no matter how old the car is.

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.

Had to laugh reading this - reminds me of when I tried to “outsmart” my insurance and dropped comp on my ‘72 Chevelle. Two weeks later, a freak hailstorm left it looking like a golf ball. The savings didn’t even cover the dent repair. Sometimes the universe has a sense of humor...

Man, that’s rough. I’ve always wrestled with when to drop comp or collision, especially on older rides. My ‘68 Charger’s not a daily driver, but I still keep full coverage - mostly because I’d never forgive myself if something random happened. Curious if you (or anyone else) factor in how much you actually drive the car? Or is it more about the car’s value and sentimental attachment? I feel like there’s no perfect answer...

I get where you’re coming from, but honestly, I don’t see the point in keeping full coverage on something that barely leaves the garage. You said,

Curious if you (or anyone else) factor in how much you actually drive the car? Or is it more about the car’s value and sentimental attachment?

Here’s how I look at it:

1. If you’re not driving it much, the odds of an accident are way lower.
2. If you’ve got a safe spot to park it (garage, storage, whatever), then comprehensive is mostly just for freak stuff like theft or a tree falling.
3. Sentimental value doesn’t pay the bills. If you’d be crushed to lose it, sure, keep coverage. But if you’re just worried about money, run the numbers - sometimes the premiums add up to more than the car’s worth after a few years.

I dropped comp/collision on my old Civic once it hit 15 years and never looked back. If something happened, I’d just eat the loss. Not saying it’s for everyone, but sometimes you gotta be realistic about risk vs. cost.

I totally get where you’re coming from. Honestly, I’m right there with you - once a car hits a certain age or value, full coverage just feels like throwing money away. I had a 2008 Corolla that I babied for years, barely drove it except for grocery runs, and finally realized my premiums were almost half the car’s value every year. Just didn’t make sense anymore.

But here’s something I’ve wondered: do you factor in stuff like hail or vandalism if you live somewhere unpredictable? My neighbor got his parked car keyed last year, and it made me second-guess dropping comprehensive even though I barely use my ride. Sometimes it feels like you’re gambling either way - save money now or risk a random bill down the line.

Curious if anyone’s ever regretted dropping coverage after something unexpected happened? Or is that just the price of being practical...

I totally get the “gambling” feeling you mentioned.

Sometimes it feels like you’re gambling either way - save money now or risk a random bill down the line.