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$6000 car worth insuring comp and coll coverage?
- Thread starter fkong777
- Start date
$738/365 days in the year equates to $2.02 a day for piece of mind. Even less next year with the leap year! :smile:
Try with Higher deductible lowers the payment
That does not sound like a huge amount of money for insurance for a 16 year old. I would say it's worth it. I recall paying over 2,000 for insurance for a Trans Am that I owned back in the late 80's and I was 20 years old. A quick Google search for an inflation calculator puts that amount at almost 4k a year in today's dollars.
actually comes out to $1400.. the $740 is just for comp and coll which is optional since the car is paid off.
This is basically a matter of simple math. Let's ignore for the analysis the possibility that the car may sustain damage that's not enough to total it, so we'll say if it gets hit or stolen, it's a total loss. You have a choice between (a) paying $738 a year and if the car is stolen or damaged recovering $5500 ($6K less the deductible), or (b) not paying for those coverages and if the car is stolen or damaged you don't recover anything. If you think the chances of the car being stolen or damaged are greater than 1 in 7.5, or if you can't afford to spend $6K on a replacement if you don't get it insured, then buy the insurance. If you think your chances are better than that and you don't mind having to pony up all the cash for a replacement if it's lost, then don't buy the insurance.
Personally, I think the chance of a 16-year-old damaging the car is greater than 1 in 7.5.
shawn110975
Suspended
to add to that, if you the insurance company pays you the 5500 minus your deductible... 5500 is a nice down payment on a new car. vs have nothing to buy another one and starting from scratch.
recently had a guy rear end a friend of mines car the damage to my buddys car was 15,000 the guy with cheapo insurance only had up to 10K of coverage so if we had gone thur the other guys insurance then my buddy would have had to eat 5K, so we went thru his insurance and got the full amount then his insurance company goes ofter the other guys insurance to recoupe the 5K.
another story I had a 2000 Honda Accord like 15 years ago, it was financed and I was required to carry full coverage by law, well I had just paid it off that month and last payment felt so good LOL anyway one morning a few weeks after I paid it off I had not reduced my insurance yet to minimal coverage when this caddy T-bones me they totaled the car I was so mad but I got 9800 for my car I then took that down to Acura and got a almost new Acura TL with navi I was so happy.
recently had a guy rear end a friend of mines car the damage to my buddys car was 15,000 the guy with cheapo insurance only had up to 10K of coverage so if we had gone thur the other guys insurance then my buddy would have had to eat 5K, so we went thru his insurance and got the full amount then his insurance company goes ofter the other guys insurance to recoupe the 5K.
another story I had a 2000 Honda Accord like 15 years ago, it was financed and I was required to carry full coverage by law, well I had just paid it off that month and last payment felt so good LOL anyway one morning a few weeks after I paid it off I had not reduced my insurance yet to minimal coverage when this caddy T-bones me they totaled the car I was so mad but I got 9800 for my car I then took that down to Acura and got a almost new Acura TL with navi I was so happy.
According to the numbers above, the car is worth $6000 and the deductible is $500. So $5500 is AFTER subtracting the deductible.
After raising three sons and watching every car they drove be in an accident within the first year I think you can pretty much count on a claim and I'd insure accordingly.
Also after raising the same three sons I would never ever consider turning a 16 year old loose in an M5.
An M5, while certainly making your son feel cool and also happy with Dad for his generosity is a lot of car to learn to drive on.
Also after raising the same three sons I would never ever consider turning a 16 year old loose in an M5.
An M5, while certainly making your son feel cool and also happy with Dad for his generosity is a lot of car to learn to drive on.
My mistake, I stand corrected
It's a 5 series not M5
Still lots of car for a 16 year old.
I'm beginning to like Hagerty more and more: the will insure your car to an agreed value, even if you daily drive it.
shawn110975
Suspended
A buddy of mine got his daughter her first car sweet sixteen a brand new 0 miles 2014 Ranger Rover she has rammed the passengerside fender, she has all 4 rims road rash like she was driving thru Iraq, the rear bumper looks like she backed into a fence and never stopped just circled in reverse till she was free of the fence, the interior looks like she had a sleep over, spilled coffee and food mashed between the seats, the car smells like mold from sweaty gym cloths.
a 16 year old needs a beater even if you are rich or poor they need to beat up the first car then they will learn to respect the new car.
a 16 year old needs a beater even if you are rich or poor they need to beat up the first car then they will learn to respect the new car.
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OP here..
We elected to keep the comp & coll part. at lease for couple years. My wife would feel better.
it is just the question of 13-15% cost to cover the car.. I would pay the car 1x over in est 5 years, given depreciation and deductible in place.
The split is leaning toward getting the coverage in most of the post even in other forums.
Unspoken logic was let my kid have more respect for the car. Because this is the car he wanted and if he damage it, it may be gone forever.
I will prob tell him that we are not covering the car even when we elect to do so.
We elected to keep the comp & coll part. at lease for couple years. My wife would feel better.
it is just the question of 13-15% cost to cover the car.. I would pay the car 1x over in est 5 years, given depreciation and deductible in place.
The split is leaning toward getting the coverage in most of the post even in other forums.
Unspoken logic was let my kid have more respect for the car. Because this is the car he wanted and if he damage it, it may be gone forever.
I will prob tell him that we are not covering the car even when we elect to do so.
Looking back at my experience with three sons I couldn't agree with you more.
At 16 they just don't have any sense of value and when someone wants to race etc. they just don't have the maturity to say no, nor the skills to control a big powerful car.
Was lucky none of them got into any serious accidents, just the usual scrapes, fender benders, rear ending someone etc.
Had I bought them a fast car and they crashed into some mom with two kids I wouldn't have been able to live with myself.
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