# Removing All perils coverage from Auto Insurance



## l1quidfinance (Mar 17, 2017)

When would you consider this? What would be your value cut off on the vehicle?

In context for me the vehicle is a 2009 Mercedes C300. To me its borderline. I would still want theft coverage. 

There is no finance and no question of being able to afford a replacement car without finance. 

Interested in opinions. 

Thank you


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## STech (Jun 7, 2016)

How much is the car worth? How much is the extra insurance and what deductible?


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## Mukhang pera (Feb 26, 2016)

I am guessing that what you call "all perils" is the coverage offered here in BC by the Insurance Corp. of BC referred to as "comprehensive" coverage. It covers:

Theft and vandalism
Fire, earthquake, explosion
Falling or flying objects such as a rock or gravel hitting your windshield
Hitting a domestic or wild animal
Weather—lightning, windstorm, hail, rising water

One may also opt for "specified perils", in which one chooses one or more from the above list. Both are quite inexpensive, the latter the more so. 

Here, the one worth dropping after a few years (for a 2009 car almost for sure unless it is some kind of collector car) is collision coverage. It remains costly for a vehicle that's fast becoming worthless. On the other hand, all perils can come in handy. Even an old car can get a chipped windshield. In my sports car days I had 2 replaced under comprehensive. Each cost about $1,100. In my decades of driving I have never made (or had any reason to make) a collision claim. If I purchased a vehicle new, I might put collision on it for the first 3 years. But probably not. Maybe, if the purchase price was in excess of $100,000, which is more than I am willing to pay for a car or light truck. I would not care to self-insure for that sum. My last new vehicle (now 3+ years old) never had collision coverage.


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## l1quidfinance (Mar 17, 2017)

If I'm lucky based on Autotrader seeling today it would fetch $7-8k 

All perils here includes Collision at least that is how it is written on my policy. So contemplating self insuring my own stupidity (at fault accident) and leaving the rest to Specified risks such as those you mentioned above. 

It would chop about $270 off the policy.


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## Mukhang pera (Feb 26, 2016)

If you can drop the collision and save that, I would. If it means you must at the same time dump the other coverage, it's less attractive. Those other coverages go to matters beyond your control and outside your sphere of stupidity. 

I seldom have paid for collision (only in a couple of cases where the vehicles were ones I allowed others to drive from time to time), since I trust myself not to do something stupid and be at fault for an accident. I don't pay for it here, even though I am entitled to a 43% premium discount for "RoadStar" (9+ years claims-free) status.


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## agent99 (Sep 11, 2013)

We have a 98 Mercedes here in Ontario. We only have liability coverage on it. No collision, no comprehensive. Perfect car, but only worth $3-$4k. Driven less that 8k km/yr, but the insurance on it is higher than newer cars we have owned (even Mercedes) . In winter, it is parked for 4 months. We remove the liability but put comprehensive back on. This so we still get the multi-car discount. If it gets stolen during the summer, I get to shop for a new car  Maybe electric, now we will get $5k from feds!

One other thing I just did, was bump our home and auto liability up to $2Million . I think it only cost about $15 extra. Maybe we should have gone higher!


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## milhouse (Nov 16, 2016)

One thing to potentially consider is hit and run coverage and corresponding deductible.


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## agent99 (Sep 11, 2013)

milhouse said:


> One thing to potentially consider is hit and run coverage and corresponding deductible.


Not sure where liquidfinance is, but in Ontario, we are required to have uninsured/underinsured driver coverage and that would also cover hit and run. 



> Uninsured Motorist Coverage is provided by your vehicle insurance policy
> 
> Under Ontario’s Insurance Act, every automobile insurance policy must provide policyholders with Uninsured Motorist Coverage. This coverage pays for property damage or personal injury losses if you were struck by a hit-and-run driver or in the event that the ‘at fault’ driver is uninsured. Under these circumstances, your insurance company pays for losses up to a maximum of $200,000, unless you are paying for additional coverage for this provision on your policy.
> The statutory requirement for Uninsured Motorist Coverage states that an injured person is legally entitled to recover damages if they can: 1) establish that the uninsured party is at fault in causing their injuries; and 2) provide evidence for the amount of damages they are claiming.
> ...


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