Sometimes people just keep renewing the same coverage year after year without thinking about whether it still makes sense.
This is so true—I was guilty of this for years. Had full comp/collision on my 2008 Corolla way past the point where it made sense. Basically paid more in premiums than the car was worth by the end. I get wanting peace of mind, but at a certain point, you’re just handing money to the insurance company for nothing. I’d rather stash that cash in my “car repair” fund and take my chances.
Had to laugh reading this because I did the same thing with my old Civic. Kept full coverage on it until it was basically worth less than my deductible. Looking back, I have no idea what I was thinking—probably just set it and forgot about it, like you said. Insurance companies definitely count on people not paying attention.
Honestly, dropping all that extra coverage felt weird at first, but after a couple months of lower bills, I wondered why I waited so long. The money I saved went straight into a savings account for car stuff, and wouldn’t you know it, my “ancient” Civic just kept chugging along. You’re right though—at a certain point, it’s just not worth paying those premiums. Good on you for making the switch. It’s easy to get stuck in autopilot with this stuff.
Had a similar moment with our old minivan. Kept paying for collision and comprehensive way past the point it made sense, just because I didn’t want to deal with the hassle of changing it. Once I finally dropped it, I kicked myself for not doing it sooner. Insurance companies definitely love folks who don’t pay attention. Now I just keep liability on anything over ten years old—if it gets totaled, I’ll just move on. Funny how much peace of mind you get from a lower bill, not more coverage.
I get what you’re saying, but I’m still a little nervous about dropping coverage. I’ve read stuff like:
Now I just keep liability on anything over ten years old—if it gets totaled, I’ll just move on.
That makes sense if you can afford to replace your car, but for me, I’m not sure I could swing a new ride if something happened. I’ve been trying to figure out the “sweet spot” where the extra coverage just isn’t worth it anymore. My plan is to check the car’s value every year and compare it to what I’m actually paying for comp/collision. If the premiums add up to more than the car’s worth in a couple years, I’ll probably switch to liability only. It’s just hard to pull the trigger, you know?
Totally get the hesitation. I’ve wrestled with the same thing, especially when you said:
If the premiums add up to more than the car’s worth in a couple years, I’ll probably switch to liability only. It’s just hard to pull the trigger, you know?
Here’s how I try to break it down for myself:
- What would it actually cost me out of pocket if my car got totaled tomorrow? If that number would wreck my budget, I lean toward keeping comp/collision.
- I check my deductible too. Sometimes raising it can drop your premium a lot without ditching coverage entirely.
- I look at my emergency fund. If it’s not enough to cover a replacement or major repairs, that’s a sign I’m not ready to go liability-only yet.
- Sometimes I call my insurer and ask for a breakdown—what does each part of my premium actually cover? Surprising how much is just comp/collision on an older car.
I get wanting to save money, but peace of mind is worth something too. For me, it’s not just about the math—it’s about what helps me sleep at night.
