QuestionI have a 2003 Subaru Outback LL Bean edition with 187K miles on it. I just put my 17yo son on my insurance policy and am looking to save some money. Should I still keep Collison and Comprehensive on the car? I live in Michigan.
AnswerMary,
Although I am very smart, I cannot see into the future and determine whether your son is going to wreck the vehicle or not. I'll give you three scenarios to think about that will help you to make your decision. In each scenario I am assuming you dropped the collision and comp.
1. Your son is at fault in an accident and the Subaru is totaled. In this scenario, so long as you have the "Residual Liability Insurance", then your vehicle would be lost, but your sone would be protected up to 20000 for one person who is injured or 40000 maximum for injuries to more than one person and then a maximum of 10000 for damages to the other vehicle. If there are no serious injuries, then the "mini-tort" would apply and he would owe no more than $500.00 which his insurance should pay for him.
2. Your son is not at fault in a "moving" accident and the Subaru is totaled. In this case you could get $500.00 for your vehicle.
3. Your vehicle is struck while it is parked. You can get paid for the full value of the vehicle if the at fault person had insurance.
In almost any other scenario that I can think of, if you drop the comp and collision the maximum you'll get if the car is totaled is $500.00, unless it was parked and provided your son is not at fault.
So, in summary if you drop the comp and collision on the Subaru you are risking about $5K if it is wrecked (in my rough opinion). A quick assessment puts the vehicle value at about $5500.00 on the private market, if it is in great condition. If you are saving $50.00 per month on the premiums by dropping the coverage then it would take you 8.3 years to save $5000.00.
I hope that helps!
