When to drop collision?

I dropped full coverage on a truck I keep at the farm when it reached eight years old. The liability coverage is still maxed out, and I think it covers up to $500K per incident.

My DW was involved in an accident, she was sitting at a stop light and got rear ended. The guy who hit her was ticketed for not paying attention. Our car was totaled. The value of the car with the mileage it had on it was about $7000 but we owed $9300. The insurance company paid the $9300 plus another $400 for all the groceries and Christmas gifts she had in the trunk.

That is because you have "replacement" insurance. The standard is for book value. As was stated earlier. It pays to have the collision until the vehicle is worth less than any repair costs. As for those that said about getting hit and not paid. That is a separate rider on the insurance it's called Uninsured/Under insured motorists coverage. That should be at least as high as your max payout that protects others from you. Say you have a million dollar policy. You should protect you with the same. That is what is sensible.

In NH liability insurance is not required for any driver. Therefore, if you don't have collision on your car and you are hit by an uninsured driver, good luck trying to collect. That being said, I take the risk and get rid of collision once the vehicle is paid off. (We always keep liability though).

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When the value of the vehicle gets under the range of about 4x the deductible, it's a risk I can take.

My practice is: when the replacement cost of the vehicle is equal to 3 years of premiums, then I drop the full coverage. Unless your accident prone, it makes more sense to invest the money where you'll get a return on it instead of giving it away to an insurance company.

I think it involves many factors.
How much extra will the collision coverage will cost you over a period of time.
How much did you pay for the vehicle?
How much is the vehicle currently worth?
Are you a safe driver?

It depends upon many things! Of course, you will never know whether somebody else might cause an accident involving your vehicle. That is a risk that you cannot predetermine, other than what type of traffic do you predominately drive in. But those other things, including how safe of a driver you are, can be assessed with fairly accurate reliability.

If the cost for collision coverage were an extra $1500 a year on a vehicle that was at least 3 years old and worth less than $10,000, I probably wouldn't pay it. I'd risk that I wouldn't be involved in an accident that will cost much more than $1500 to $3000 to fix, and if it did then I'd just fix it myself or buy a cheap used car instead. I'd rather have that extra money working for me than working for a wealthy insurance company and agent.

Well, whatever it's called, I like it. I know we have Uninsured/Under insured coverage if that's where it comes from.

On another note, just exactly how much is everyone paying for Collision and Comp? Obviously it varies from state to state, but of my $900 annual vehicle insurance bill, only $300 goes to Collision and Comp, the rest is liability. I certainly can't replace a car for 300 bucks, not even over a period of 3 years.