I have three older cars that I maintain regularly and drive until they’re done:
- 2012 Chevy Impala with 190,000 miles, worth less than $3,000
- 2010 GMC Yukon XL Denali with 195,000 miles, worth less than $5,000
- 2010 Toyota Camry with 178,000 miles, worth less than $5,000
If I drop collision coverage on them:
- Impala: $400/year reduction (this is high because my new driver daughter is rated on this car)
- Yukon: $250/year reduction
- Camry: $150/year reduction
This amounts to a significant amount of money saved annually.
I could afford to lose either the Impala or the Yukon and might not replace them. The Camry is driven by my 18-year-old daughter, and if something happened to it, I’d likely need to replace it. I can afford to purchase one replacement vehicle out of pocket at the values mentioned above.
I haven’t had a vehicle claim in the 20 years I’ve been with my insurance company, but they told me that if I did have a claim over $500, my rates would likely go up.
I’m inclined to remove collision coverage since if I did file a claim, I’d likely pay it back in higher premiums. Does this seem like a reasonable decision?
Edit: The current deductible on all vehicles is $500.
Thanks in advance for your help.