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Old May 2nd, 2012, 11:40 AM   #21
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Do you have $7500 sitting in the bank to replace it if you wreck it?

If not it will take you 37 months of having full coverage on it to lose out on your investment by covering the vehicle.

This basically assumes you are starting with $0 to replace your car and you pay $100 extra per month to insure it.

So 3 years from now that car will be worth about $3500, and you will have spent $3700 in insurance. If you haven't wrecked it by then and can afford to replace it drop the full coverage.

If you have wrecked it by then, then you were smarter to get the insurance.
Car is costing me zero,my wife's Aunt is very nice.......
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Old May 2nd, 2012, 11:41 AM   #22
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ummmmm what's your point?

If you carry no insurance and you ruin the car you get nothing.....I don't care if they fix it or repair it, i'd rather spend a few extra bucks a month to insure my car then crash it and be left with a busted car that isn't repaired and isn't totalled out with a check in the mail.
Forgot the point part.....
Better off and cheaper to repair a vehicle out of pocket. Providing it is affordable to do so.
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Old May 2nd, 2012, 11:44 AM   #23
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Can you afford to repair any damages that may happen from an accident to make it drive-able again? Can you afford to write it off as a complete loss if it no longer makes sense to repair it?

If your answer is yes to either one of those questions I wouldn't insure it for full coverage and be your own insurance company.
Agreed. I always look at the value to replace a vehicle if it gets wrecked or totaled. If I can afford that amount with my savings then I get PLPD, otherwise full coverage.
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Old May 2nd, 2012, 11:48 AM   #24
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Car is costing me zero,my wife's Aunt is very nice.......
well if you NEED it replaced until you have some $$ in the bank then get full coverage, if you don't then run the gamble.

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Originally Posted by Immortal View Post
Forgot the point part.....
Better off and cheaper to repair a vehicle out of pocket. Providing it is affordable to do so.
How is it cheaper to replace out of pocket?

I've paid approximately $19,000 in insurance since I started driving (average of $100 per month).

I received a $13k check from my unsurance company for a totalled Grand PRix that I in turn paid $10,500 ISH, to my bank to cover the loan. $2500 in my pocket.

The remaining 9k of insurance premiums were eaten up when I hit a deer with my jeep wrangler. ($8700 if I remember correctly).

I've had 5 (give or take) windshield chips repaired free of cost $250 value.

I believe those are the only claims I have made in 16 years of driving, and I'm damn near even.

if I didn't have full coverage insurance I would have paid about $50 a month or $9500 in insurance, plus 10,500 to pay off my grand prix, plus $8700 to fix my wrangler, plus repaired windsheild chips @ $250. or a grand total of $28,800.

Yeah, that seems cheaper.

None of this takes into account the settlement my insurance company paid to the driver I hit with my grand prix, (though I assume plpd would have covered that the same)
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Old May 2nd, 2012, 11:50 AM   #25
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So, say you have a paid off car, but zero money in the bank, and you wreck that car tomorrow, then what?
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Originally Posted by mschaffer66 View Post
and if you carry insurance and you don't ruin your car you have paid for nothing.

It all comes down to how much that "few extra bucks" really is, what the vehicle is worth, and what you can afford to pay to fix it or replace it.

As soon as Kerry's XJ was paid for I dropped full coverage on it and saved something like $70-100 a month. It didn't seem necessary for a vehicle that was only worth a couple thousand. I made out because we had no collisions with it and the insurance wouldn't have covered my submarine maneuver anyway.
Like I said, it comes down to what it's worth and what you can afford to lose as well.

Kerry's XJ was an acceptable risk. It was only worth a few grand, I could have afforded to purchase it's duplicate if I had to, and I could also have financed something else if need be.

Now our current vehicles are a different story. My JK will be paid off long long before its worthless and it will probably get full coverage until its in the same boat as Kerry's XJ was.

If this guy is scrounging together every penny he has to buy the car cash money it would be retarded to not get full coverage. At least if something did happen he would get a little back to help with is loss.
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Old May 2nd, 2012, 12:15 PM   #26
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Ask this guy:

well they stole my jeep last night - Great Lakes 4x4. The largest offroad forum in the Midwest
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Old May 2nd, 2012, 12:16 PM   #27
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Yes. I have an 02 Suburban in VERY nice shape that I stole for $5500 dollars but books for MUCH higher. I argued with the wife because she did not understand why I put full coverage on it when I have PLPD on everything else. I explained to her that I have parts to fix the rest of the vehicles but she still didn't get it. 3 weeks after getting it I parked in the back of a Dodge Durango. She now understands.
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Old May 2nd, 2012, 12:17 PM   #28
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Yes. I have an 02 Suburban in VERY nice shape that I stole for $5500 dollars but books for MUCH higher. I argued with the wife because she did not understand why I put full coverage on it when I have PLPD on everything else. I explained to her that I have parts to fix the rest of the vehicles but she still didn't get it. 3 weeks after getting it I parked in the back of a Dodge Durango. She now understands.
Man, you REALLY wanted to prove your point, didn't you?
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Old May 2nd, 2012, 12:52 PM   #29
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Man, you REALLY wanted to prove your point, didn't you?
Whatever means necessary
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Old May 2nd, 2012, 01:03 PM   #30
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Quote:
Originally Posted by mschaffer66 View Post
Can you afford to repair any damages that may happen from an accident to make it drive-able again? Can you afford to write it off as a complete loss if it no longer makes sense to repair it?

If your answer is yes to either one of those questions I wouldn't insure it for full coverage and be your own insurance company.
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comp it out by looking for what they currently are listed at on various sites - compare those asking prices to kbb, edmunds and the like. factor say 15% off for "sales value vs. asking value"

now, take a look at that value. if the annual premiums would replace that value of "x" in "y" number of years (2 or less?) then probably not.

I would keep comp. on it for theft, the aforementioned Deer hits and/or windshield replacement.

Age of the car has very little to do with whether or not to keep full coverage on it compared to value of the car.

my 2002 BMW that was hit head on in July of 2011 fetched just under $16k when Citizens totaled it.
Hey look, these guys know what they are talking about.

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Exactly. Every time you send that check in you are betting the insurance company that something is going to happen to your vehicle over the course of the next month. More often than not you lose that bet, just like at the casino, and that's why insurance companies and casinos make big money.

To the OP what is your premium difference and what is blue book on the car?
Chew on this: I can count on one hand how many years State Farm has collected more in insurance premiums than they have paid out in claims.

Quote:
Originally Posted by kickstand View Post
Do you have $7500 sitting in the bank to replace it if you wreck it?

If not it will take you 37 months of having full coverage on it to lose out on your investment by covering the vehicle.

This basically assumes you are starting with $0 to replace your car and you pay $100 extra per month to insure it.

So 3 years from now that car will be worth about $3500, and you will have spent $3700 in insurance. If you haven't wrecked it by then and can afford to replace it drop the full coverage.

If you have wrecked it by then, then you were smarter to get the insurance.
Most people DO NOT turn out this lucky to break even on their lifetime insurance quotes. The truth is, most people DO NOT have claims.

If a customer is a bad saver, but a good bill payer---I'll tell them to go for full coverage on their older vehicle----because I know that they can afford the extra $20-30 month, but they would never put away the money it would take to buy another vehicle if the time comes.


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Originally Posted by IFS SUCKS View Post
Car is costing me zero,my wife's Aunt is very nice.......
That's nice. But it doesn't really matter what you have into the vehicle as much as it matters what you need out of it. If you smash that vehicle into a tree, can you walk away with nothing and get another vehicle? If you can't, get full coverage until you can.

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Originally Posted by Ridin Dirty View Post
Yes. I have an 02 Suburban in VERY nice shape that I stole for $5500 dollars but books for MUCH higher. I argued with the wife because she did not understand why I put full coverage on it when I have PLPD on everything else. I explained to her that I have parts to fix the rest of the vehicles but she still didn't get it. 3 weeks after getting it I parked in the back of a Dodge Durango. She now understands.
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Originally Posted by BlooMule View Post
Man, you REALLY wanted to prove your point, didn't you?



To the OP: What is the difference in cost between full coverage and PLPD? That shuold be a key factor in helping you decide.
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Old May 2nd, 2012, 01:11 PM   #31
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Chew on this: I can count on one hand how many years State Farm has collected more in insurance premiums than they have paid out in claims.
Huh? Don't you mean that the other way around?
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Old May 2nd, 2012, 01:24 PM   #32
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Huh? Don't you mean that the other way around?

Nope, I mean it just as I wrote it. If It wasn't shocking, I wouldn't have asked you to chew on it.
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Old May 2nd, 2012, 01:25 PM   #33
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Huh? Don't you mean that the other way around?
I read it like this: only a couple of times ever has State Farm paid out more than they took in via premiums - but then I'm eating lunch while trying to interpret it. If it's the opposite then they must make a crapload of money off their investments and real estate holdings and/or other business units.


I've had two cars with actual collision claims in my life - the BMW, and the wife backing into the neighbor's new car a few years ago.

however I have had multiple deer hits, windshields repaired or replaced and 2 airborne semi-truck tire treads all cause significant claims over my 27 years of driving. even with that, I know I've paid out more in premiums than I have cost any insurance company
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Old May 2nd, 2012, 01:29 PM   #34
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well if you NEED it replaced until you have some $$ in the bank then get full coverage, if you don't then run the gamble.



How is it cheaper to replace out of pocket?

I've paid approximately $19,000 in insurance since I started driving (average of $100 per month).

I received a $13k check from my unsurance company for a totalled Grand PRix that I in turn paid $10,500 ISH, to my bank to cover the loan. $2500 in my pocket.

The remaining 9k of insurance premiums were eaten up when I hit a deer with my jeep wrangler. ($8700 if I remember correctly).

I've had 5 (give or take) windshield chips repaired free of cost $250 value.

I believe those are the only claims I have made in 16 years of driving, and I'm damn near even.

if I didn't have full coverage insurance I would have paid about $50 a month or $9500 in insurance, plus 10,500 to pay off my grand prix, plus $8700 to fix my wrangler, plus repaired windsheild chips @ $250. or a grand total of $28,800.

Yeah, that seems cheaper.

None of this takes into account the settlement my insurance company paid to the driver I hit with my grand prix, (though I assume plpd would have covered that the same)
Shit, not only have I paid $19k in insurance, it really only cost me half that or so to upgrade to full coverage, I would have had to pay the PLPD premium (about $50 a month) anyway. Making full coverage an even bigger no brainer to me.
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Old May 2nd, 2012, 01:45 PM   #35
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I read it like this: only a couple of times ever has State Farm paid out more than they took in via premiums -
Wrong.

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Originally Posted by RyeBread View Post
but then I'm eating lunch while trying to interpret it. If it's the opposite then they must make a crapload of money off their investments and real estate holdings and/or other business units.

Bingo!
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Old May 2nd, 2012, 01:56 PM   #36
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My rule of thumb is typically that if the vehicle is worth more than $4000 i have full coverage on it. For my truck it is only an extra $160 a year for full coverage with a $250 deductible.

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Forgot the point part.....
Better off and cheaper to repair a vehicle out of pocket. Providing it is affordable to do so.
How do you figure? As stated above, for me at least it is only $160 a year more for full coverage(on a truck appraised at $11,000) so by your reasoning if i hit something and had $2000 in damages I would need to of owned the truck for 12 years to end up taking a loss that is equivalent to one year worth of the extra i pay for full coverage (that is assuming it is my fault and i am paying the deductible).
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Old May 2nd, 2012, 02:32 PM   #37
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Wrong.
can't really blame me for reading it backwards - your gender has in my experience, a propensity for twisting words around to the point of making it difficult to be understood - leaving us poor saps to guess if one meant it one way vs. another.

and yes, including when it's in plain english
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Old May 2nd, 2012, 02:51 PM   #38
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Nope, I mean it just as I wrote it. If It wasn't shocking, I wouldn't have asked you to chew on it.
Wow.

I've been carrying a hell of a burden for a lot of people then.

I'd imagine lifetime of driving I've pulled less than $5k worth of insurance claims. Yet I've paid in probably.... a lot.
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Old May 2nd, 2012, 02:51 PM   #39
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Yes.
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Old May 2nd, 2012, 02:54 PM   #40
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your deductible is part of the equation as well. don't put a $500 deductible on a $1500 car for example. I kept comprehensive on my '95 ZJ with a $250 deduct in-case of a deer/theft/tree falls on it situation or I were light it on fire... It was only a few bucks per month and I didn't have funds avail to replace it. If I wrecked it on my short trip to work, then my tough luck.
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