Need help with car insurance

[AndyP]

Do I need collision and comprehensive? It would be on an older Honda Del Sol that I could fix myself if it were in an accident. When I say need, I mean like, legally, if I have a loan? I live in Wisconsin if that helps. I looked at a quote and without those two things my insurance is affordable, but if I add in just collision it doubles!! Thanks for any help :)

[Richardo]

1. I'm pretty sure collision is only required if the car has a lien...

...if it's yours (paid off) I don't know why they'd care.

Richardo <--- knows nothing about insurance, especially in Wisconsin. Consult a professional.

[Minimus]

2. Only if you have a loan on it

If you own it outright then the risk is yours. Liability is required by law though.

[hermetic]

3. Every state has different laws about that

I think WI does not have mandatory insurance but not sure. Just Google it already.

[shraby]

4. I live in WI

we carry public liability and property damage (pl/pd) the cars are paid for so we cover damage to other people.
If a car is financed a person has to carry collision for the bank's protection. If it's paid for, you can drop collision if you want.

[Lone_Star_Dem]

5. Check with your lender.

If the vehicle is collateral against the loan you must have it. If it's a personal loan your free and clear.

Know this however, if you total it you still have to pay the loan off.

[Historic NY]

6. How old is the car? What is its value? Would it be worth repairing?

If your answers are not much then consider dropping collision or raising the deductible rate to a higher level. Can you afford another car if this one bite the dust? Generally if the car is over 5 yrs old and books for a low price then collision is not worth it. Comprehensive covers a lot of things, like fire, theft, hitting an animal; the same consideration should be taken here. Mainly if you can afford the loss of the car then paying extra to insure it beyond its true resale value is not cost effective.

I think the call it the point of diminishing return, your paying to insure a car for more then you could ever get if you sold it.

[BiggJawn]

7. Several factors to consider.

The Lien factor has been mentioned already.

Replacement cost. look up your car in Kelly's Blue Book and find out what average wholesale is on that car. If the current value is LESS than what you'd be paying annually in premiums, it's kind of hard to justify paying for comp/collision coverage. Why pay $1200 a year on a car that you're only going to get $500 for if it's destroyed. And at today's body shop prices, it wouldn't take much of a wreck to have them total out the car.

Take the money and bank it, so if you do get your ride fragged, or a windshield rocked, you can replace it OOP...

You are required only to carry liability insurance of there is no lien on the car.

[EC]

8. Find out what Blue Book is

on your car. I work for an insurance office in Wisconsin. My opinion is go as high as you can on Liability...and if your neighborhood isn't so hot keep comprehesive...but ditch the collision, all they would give you is blue book if your car is totaled. Of course if you still have a loan, you'll have to keep the collision, this because your car is still owned by the bank, not you, with an older one with a loan, you should also have Gap, so your loan will be paid off too if the car is totaled. (By the way, it's the finance company that requires the insurance, in Wisconsin it's not manditory to carry insurance, but the finance company will tack on their insurance (at 2-3X's the cost) if you don't carry it, and sometimes call in the loan...so you're stuck. I hate carrying loans on older cars, it's so much cheaper to just carry liability.


on edit: Find a company that will allow you to pay monthly like Dairyland...long term it costs more, but if you can't make the big premiums, your just safer with the monthly...Wi has gone way up and is using your credit score to rate premiums, along with your MVR...what's really funny is if your credit score is over 799 they don't even check your MVR's...you get the lowest premium ...to me that is a form of red lineing and have told Feingold about it, it's to be brought up sometime this year in state congress.

[AndyP]

9. ***Problem solved***

Thanks for the input everyone. I have to have collision on my car but I'm going ditch comp. But I just got another email from my insurance angent and she said that she took my mom's car off and added my new car (my mom's car doesn't have comp or collision), so that's why the quotes were outrageous. I can afford all the cars I wanted wheeee!!!! :party:

My insurance is still going to go up but not double (it does go up by about 30% though- but I have a not-so-good driving record) I can afford it rising because I'm going pay less on my car loan. I'm so happy. I just got a promotion at work too- this is turning out to be a great day!