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David Harper

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because of covid I decided paying for full coverage on my auto ins. was a waste of money. My car is spending most of it's time in the garage. So I dropped both collision and comprehensive and reduced my liability coverage to the state minimum. My premium is now $25 a month. I know it's risky so I drive VERY carefully. I haven't had an at-fault accident in 40 years. As for comprehensive, I've been driving for 50 years and never had a tree fall on my car. I hate insurance. 99% of the time it's a total waste of money. I realize this could turn out to be a mistake and I wouldn't advise anyone else to do it. But boy it sure changed my cash-flow situation.
Consider; if you file a claim under your collision coverage (for an at-fault accident) this is what will happen immediately: your premiums will skyrocket. Also, you will first pay your deductible which may be a thousand dollars. If an accident is the other guys fault his insurance pays for your car. But I did keep uninsured motorist coverage.



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shoegazer

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Most financial planners advise to max out your liability coverage and then buy a $1M to $2M umbrella policy on top of that. One at fault accident could wipe you out. Understood re: cash flow and these weird times. But reducing liability is just scary in these days. Good luck.
 
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David Harper

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Most financial planners advise to max out your liability coverage and then buy a $1M to $2M umbrella policy on top of that. One at fault accident could wipe you out. Understood re: cash flow and these weird times. But reducing liability is just scary in these days. Good luck.
I hear what you're saying. Unfortunately I lost my job because of covid 19 and insurance isn't a priority right now. I've been paying for it my whole life and I've never gotten anything back for my money.
 

the8rotor

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I hear what you're saying. Unfortunately I lost my job because of covid 19 and insurance isn't a priority right now. I've been paying for it my whole life and I've never gotten anything back for my money.
I would never reduce my insurance coverages on any of my policies. Insurance SUCKS, but it is a necessary evil. If the $100 or so per month helped your cash flow as much as you stated, I would sell my car and choose other commuting options.

40+ years and never needed your insurance doesn't make what could happen tomorrow not occur. Good luck to you OP, but insurance keeps me sleeping well at night.
 

the8rotor

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You should also never look at insurance as "giving you a return."
 
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David Harper

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You should also never look at insurance as "giving you a return."
If you have an accident and your insurance covers the damage then you have, in fact, gotten a return for your money
 

Drake

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If you have an accident and your insurance covers the damage then you have, in fact, gotten a return for your money
But then they punish you for actually using their service that you've been paying for by raising your rates :banghead:
 

the8rotor

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If you have an accident and your insurance covers the damage then you have, in fact, gotten a return for your money
🤣. Insurance is not like investing money expecting a return. Your comments insinuate that is what your expectations are from auto insurance. Ridiculous.
With that logic, have you quit paying healthcare insurance because you have not "seen a return?"
 

the8rotor

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Driving is a privilege, not a right. You have to pay to play. Insurance premiums suck, but where you live dictates premiums the most. OP you live in one of the most populated areas with the highest premiums... ever consider that?
 

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I’m 20 and I pay 250 just for insurance alone lol, I understand where u come from, god forbid something happens and you could financially bury yourself for a looong time.
 

tacthecat

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I hear what you're saying. Unfortunately I lost my job because of covid 19 and insurance isn't a priority right now. I've been paying for it my whole life and I've never gotten anything back for my money.
Uninsured motorist coverage only pays you If...AND with minimum other insurance you're only legal in your state. It usually doesn't fix your car. If you own anything of value you're putting it at risk.
 

AegeanT

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If this improved your cash flow situation as much as you say it did, then you should probably sell the car and get a beater so you can afford the insurance. Sorry, but driving a nice civic and risking it all to save 100-200 a month is asinine at best. If I had no insurance on my car and I got into a crash, it would hurt me for years.

Look at the insurance payment as a peace of mind and not an investment. If you look at everything as an investment, you always lose.

You remind me a lot of my late father. I’ll give you a small example. He had a pontoon boat that he bought for $13k cash, and insurance for it was about $200/year. He cheaped out and said it was too expensive. Guess what happened 6 months down the road? Bad wind storm caused major damage to it along with the other boats in storage. Estimate to fix it properly was $7,000, and guess what it would have cost if he had paid the damn insurance rate? A deductible.

Point being, for the love of god, don’t do what he did. It’ll happen when you need it and don’t have it. Just because it didn’t happen for 40-50 years, it doesn’t mean it won’t happen an hour from now or tomorrow.
 

the8rotor

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@AegeanT finally some sound advice coinciding with mine. The elephant in the room is the cash flow savings per month dictating this move. I would never have a luxury item like a newer car if I was financially hurting.

I had to have the same financial discussion with my 69 year old father about insurance (life and auto), mortgage, and car payments and what should take priority. Driving is a luxury. You are risking any sort of financial stability in the future by cheaping out on a necessary evil, which is auto insurance.
 

the8rotor

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You remind me a lot of my late father. I’ll give you a small example. He had a pontoon boat that he bought for $13k cash, and insurance for it was about $200/year. He cheaped out and said it was too expensive. Guess what happened 6 months down the road? Bad wind storm caused major damage to it along with the other boats in storage. Estimate to fix it properly was $7,000, and guess what it would have cost if he had paid the damn insurance rate? A deductible.
But, but, but, where was his return? /endsarcasm.
 

AegeanT

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But, but, but, where was his return? /endsarcasm.
Down the drain like his boat... plus side is he saved $100 on insurance premiums. ;)
 

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