@shenanigans When I asked to add collision for my 2016 BMW 428xi, my insurance company (and I cross shopped / same pricing roughly), wanted to charge me an additional $240 a month - with a $1000 deductable.
Considering I could buy my car (same year make and miles) for roughly $16,000. I really don't see the point of spending $3000 a year. The odds of me totaling my vehicle in the next 3 years, at which point my car will be worth less than $10,000-- is very low.
I've never totaled a car. In 45 years only one minor fender bender $500 damage.
I realize if you work in insurance you see it all the time, but when was the last time you, or a family member or friend, totaled a car.
A report by the
car insurance industry estimated in 2022that the average driver will file a claim for a collision about once every 17.9 years.
So I would pay $3000 for 18 years... $54,000 in collision insurance. For a car that isn't worth half that.
Now I know-- you did say "Plus they will help you with the repair process"....
I'm not paying a $54,000 fee over 18 years so IF I even get into an accident they can look up the body shop for me.
Over the course of your lifetime, it found that the average person who got their license at 16, will have a total of 3-4 accidents by the time they turn 75.
25% of accidents are total losses.
60 year of collision insurance... for the odds of 1 total loss and 3 minor collisions that require some repairs.
60 years at today prices moving forward not even taking into account future inflation = $180,000
Collision, is like the insurance they sell when you rent a car from Enterprise.
It's a total rip off, and it's how the insurance industry makes all their profit.
It's unfortunately required for any car you financed and don't own outright.
But 1 accident on average every 18 years at $3000 = $54,000.
No thanks I'll take my chances, keep my money, and if I get hit by lighting, I'll buy a new car and finance if I have to.
