Several years ago, we dropped comp & collision on our old cars. It seemed silly to pay $300/year insurance on a car that was worth about $1500 ... especially when we carry a high deductible.
After the van accident I was trying to figure out how the insurance company determines the value of a used car. Everybody told me that they'll consider it to be less than the Blue Book value of the vehicle. Our agent told me that you can never know how much the car will be worth until you have an accident and hear from the adjuster. Well, gosh, that doesn't help you make any decisions about when to quit paying for comp & collision.
But for us, we found that the value of the car as determined by the insurance company was very close to the private-sale value found on the Blue Book website.
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our insurance company (USAA) actually goes out and sees what comparable cars are selling for on the car lots and gives us that value, so we actually got higher than blue book when our 10 year old Tempo's electrical system caught fire.
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