Insurance Question

J

jpalaska

New member
Hello All,
I'm trying to decide if I should keep collision coverage on my 2006 4runner.
It's a Sport Edition, perfect condition with only 19,400 miles on it.
The annual premium for $500 deductible is $601. (we get hosed up here in Alaska). It's AARP insurance from The Hartford, so I think it's a relatively good rate. (except for the hosing we get in Alaska.) I have a very clean driving record.

My question is, do you think it's worth it to keep the collision coverage?
Thanks,
JP
 
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That is still easily a $17k truck. Unless you've got a bunch of money in case it gets wrecked, i'd say keep collision on it. Or you could alway try bumping up your deductible to $1000 to see if its cheaper.
 
You think you're getting hosed paying $600 for full coverage for a year????

And I think a general rule of thumb is drop it if a vehicle is worth less than $3500-$4000. Your truck is well out of that range.
 
toybox said:
You think you're getting hosed paying $600 for full coverage for a year????

And I think a general rule of thumb is drop it if a vehicle is worth less than $3500-$4000. Your truck is well out of that range.
Click to expand...

No, the $600 is just for the collision coverage. The rest of the coverage is another $600.
 
no brainer, keep collision on the truck unless the thing is a beater. Like its already been stated, a $500 deductable is nothing compared to replacing the entire trucks value if totalled.
 
think of it this way. if the the accident is anything but someone elses fault you are on the hook for any repair.

your vehicle is worth $20850.00 + $3775.00 for low mileage. these are NADA figures. this is what an ins co would pay you if it got totalled. if you have no collision and it gets totalled by any other than being someone elses fault you get -0-.

and wow that amount is high my collision is 240.75 with a 500.00 deductible on my '06 limited. you might want to price out other ins companies and get rates from them to compare. if you have an agent then let them do the work. every year my agent checks the rates for me and lets me know the right way to go.
 
Put it this way. My buddy had just liability on a fairly new honda element like an 07 and he rolled it on black ice and got nothing for it. So, unless you want to be in that situation keep the colision. I like the mention before. Unless your car is worth like less than 4k have collision on it.
 
Yeah, keep full coverage...I've always told customers/friend/family unless you can afford to write a check to replace the vehicle, you're much better off keeping full coverage for the unforseen accident. Just a couple years ago on my 96' Tacoma I still had full coverage. At one point I carried Comp only for deer hits and hail, but then added Collision back just in case.
If you have some money saved up and are still not wanting to carry Collision coverage, at the very least, carry Comp and UMPD for the uninsured morons on the road. Just my thoughts.
 
Don't want to be the Negative Nancy but...you wont need full coverage until the day after you drop it. It's just the way things are. :)
 
your vehicle is worth $20850.00 + $3775.00 for low mileage. these are NADA figures.
Click to expand...

Unfortunately that's NOT what the insurance industry uses to access the value.

This vehicle is no where worth $20,000....NOT EVEN CLOSE.

And I just checked NADA...and got figures of $11k to $16k.
 
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Wow

Wow...I'll pay 11 to 16K tomorrow for an 06, Sport with those low miles! I'm trying to find one now and no way am I finding those prices!
 
Different companies have different equations. Sorta like Credit Score figures, they are very protective of the figures.

It won't be high, and it is usually low. You are able to negotiate with your insurance agent on the "value" of your car if it is totaled out; but the power really lies in their hands. This is where the difference between a crappy, cheapo company and a higher priced, higher quality company comes in.


But regardless. I want to second and third what people are saying. Why in the world would you risk it? On a vehicle worth 10k or more, why risk it? If you have enough cash, IN BANK, to throw down on a new car should you destroy yours; then go for it. Get rid of comprehensive. The reality is, in this economy, most people cannot.

If you own a 2000k beater you could drive in an emergency, then cancel. But what people are getting at it is... it isn't smart to cancel comprehensive on a vehicle worth so much money.

You hit a deer or slid out on ice and slam into another car and that is all on you.
 
Wow...I'll pay 11 to 16K tomorrow for an 06, Sport with those low miles! I'm trying to find one now and no way am I finding those prices!
Click to expand...

You have to look at what an insurance company is going to give you. This is what we're talking about isn't it. NOT what a dealer may advertise one for. I can find many 06 4runners for sale here in NH for $20k...I can also find many for $15k. Insurance adjuster is NOT going to give you $20k when they can find one for $15k.

As for it's worth...If you're willing to pay $20k for an 06 then I guess it's worth it to you. In Nov of 06 I bought my 05 4runner with 11k miles for $19k. The dealer was asking $24k. Now it's 6+ years later.
 
MikeInNH said:
Unfortunately that's NOT what the insurance industry uses to access the value.

This vehicle is no where worth $20,000....NOT EVEN CLOSE.

And I just checked NADA...and got figures of $11k to $16k.
Click to expand...

sorry to the original OP for the off topic:

ahh lets see. i work for an ins company, i do these figures every day. this is what WE pay for the vehicle. we pay what the vehicle is worth, we do not pull a figure out of our behinds. there may be an instance where the vehicle is in fair to poor cond and will adjust the figure, but for an '06 with mega low miles this is the correct figure. i checked my book and it is correct. also here is the link to the actual NADA website and figure they came up with. there may be a few option differences.

http://www.nadaguides.com/Cars/2006/Toyota/4Runner-V6-4WD/Utility-4D-Sport-4WD/Standard-Equipment

you might have used trade in figures not retail figures. you cannot use trade in figures because of the difference. the owner could possibly sell it outright and make more money so we would have to pay retail. also for future reference you are entitled to your sales tax back if you live in a state that has it.
 
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ahh lets see. i work for an ins company, i do these figures every day. this is what WE pay for the vehicle. we pay what the vehicle is worth, we do not pull a figure out of our behinds.
Click to expand...

Gee...Lets see...I'm a software engineer...who for over 12 years consulted to the Insurance company. I designed and wrote several of the rating systems for the claims divisions used by several very large insurance companies today.

you might have used trade in figures not retail figures. you cannot use trade in figures because of the difference
Click to expand...

Who said I was. I surely never said it was trade in figures. Every sight I looked at NADA, Kelley Blue Book all were showing RETAIL value. Only ONE site showed any number anywhere CLOSE to $20k....But $12-$14k was the norm.
 
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I have not had any cause to be upset with Allstate. That said the last post is the reason lawyers exist in this area.

JP's 4Runner is worth much more than what I understood is the insurance cost of replacement. Please correct me if I am wrong about what the insurance would reimburse if a total loss occurred.
 
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