Car insurance on older car- Mtbr.com
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  1. #1
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    Car insurance on older car

    There's some bike related stuff here......

    I have an older 1998 Audi A4 that currently has full coverage. The condition is a step below fair. It's salvaged. My question is, is it worth it to keep full coverage on this car or shall I go with liability. This is to save money so I can buy more bike related paraphernalia.

    Mind you, this car gets driven less that 60 miles per week, maybe less as it's a backup car.

  2. #2
    Drunken fool
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    Given that you said it's salvage I'd say no. They won't give crap on a salvage title, and a '98 is not old. lol.
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  3. #3
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    Double and triple check with your Insurance agent on this. But in some states your ability to Sue is dictated by your car insurance. I've had a few friends get creamed on their bikes and they could only Sue for this much because they had limited tort and no under insured motorists on their pollicy.
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  4. #4
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    Quote Originally Posted by the-one1
    There's some bike related stuff here......

    I have an older 1998 Audi A4 that currently has full coverage. The condition is a step below fair. It's salvaged. My question is, is it worth it to keep full coverage on this car or shall I go with liability. This is to save money so I can buy more bike related paraphernalia.

    Mind you, this car gets driven less that 60 miles per week, maybe less as it's a backup car.
    This is an easy decision. Do you have the ability/cash to replace the car if something happens to it that would be covered by the current policy? If yes, then you "self insure" and drop the coverage. If not, then you keep the coverage.

  5. #5
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    Nah!

    Quote Originally Posted by the-one1
    There's some bike related stuff here......

    I have an older 1998 Audi A4 that currently has full coverage. The condition is a step below fair. It's salvaged. My question is, is it worth it to keep full coverage on this car or shall I go with liability. This is to save money so I can buy more bike related paraphernalia.

    Mind you, this car gets driven less that 60 miles per week, maybe less as it's a backup car.
    It's not like it will financially sink you if you made a mistake and totaled it. If the car was cherry, low miles, it would still be worth only around $5k... maybe 6. Salvaged in fair condition, prolly closer to $3k.

    BTW, I love A4s. My wife has a 99, and I have an 02. Quattro is the shiz.

  6. #6
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    the day we paid off our 05 mazda (9 months after purchase) we cancelled full coverage insurance.

    factor in your deductible, plus whatever amount they raise your rates after you file a claim. unless you're constantly crashing or getting cars stolen, full coverage doesnt make a ton of sense for older cars. i saved enough money on monthly insurance payments alone to replace my other car twice since opting for liability only!

    the value on a salvaged 98 a4 is going to be closer to a grand.

  7. #7
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    Quote Originally Posted by One Pivot
    the day we paid off our 05 mazda (9 months after purchase) we cancelled full coverage insurance.

    factor in your deductible, plus whatever amount they raise your rates after you file a claim. unless you're constantly crashing or getting cars stolen, full coverage doesnt make a ton of sense for older cars. i saved enough money on monthly insurance payments alone to replace my other car twice since opting for liability only!

    the value on a salvaged 98 a4 is going to be closer to a grand.

    All good information.

    There is no "book" for salvaged vehicle values. Salvaged vehicles are only worth what someone is willing to pay for them. They're pretty much worthless.

  8. #8
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    I work as a claims adjuster in FL and would simply suggest calling your agent or your carriers customer service. At a previous job I did have the "pleasure" of handling total losses for several states.

    We used CCC for our valuations and they were generally in line with a trade-in value from kbb.com or NADA. It appeared that CCC adjusts for a salvage title by cutting the value in half. This wasn't a rule, but an observation/generalization. I've seen a few older cars value not come up to their deductible amount and the owners who had paid a premium for collision end up with only $500 for basic transportation. Most had paid way more than that in premiums over the years.

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    Quote Originally Posted by fatcamper
    I work as a claims adjuster in FL and would simply suggest calling your agent or your carriers customer service. At a previous job I did have the "pleasure" of handling total losses for several states.

    We used CCC for our valuations and they were generally in line with a trade-in value from kbb.com or NADA. It appeared that CCC adjusts for a salvage title by cutting the value in half. This wasn't a rule, but an observation/generalization. I've seen a few older cars value not come up to their deductible amount and the owners who had paid a premium for collision end up with only $500 for basic transportation. Most had paid way more than that in premiums over the years.
    My ex-wife totalled her car a few years ago, and USAA used CCC. IMO CCC was a POC.

    It was WAY too easy to pick apart their appraisal, point out the errors, omissions, show that it doesn't follow professional appraisal standards, and show that they were simply hired to lowball the replacement value.

    Course.....it helped that I am a real estate appraiser by trade.

  10. #10
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    Quote Originally Posted by pimpbot
    It's not like it will financially sink you if you made a mistake and totaled it. If the car was cherry, low miles, it would still be worth only around $5k... maybe 6. Salvaged in fair condition, prolly closer to $3k.
    Yep, but if you don't have the $5k to buy another car, you'll be driving the Nikes or riding the bike to work. I have an older car, the full coverage is cheap and more than paid for itself when I smashed into a deer last fall.

  11. #11
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    Thanks guys for giving me something to think about. I have 2 other cars and this is a standby backup car the grandma drives sometimes.

  12. #12
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    What are your full coverage premiums / month? What have the quotes been like for liability? Those should lead you to a decision based on math. Now that's in a normal situation. With a salvage '98 A4 in fair condition, you'd be damn lucky to get $1k out of it. After your deductible, how much is left? How many months of the savings with liability vs. full coverage would it take to make up that $500? Seems like the decision is pretty easy here.

  13. #13
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    A rebuilt salvage vehicle is typically worth around 50% of what an equivalent is without the branded title. Sometimes it is worth more, sometimes less depending on the market. For insurance claim purposes you can bet it will be 50% or lower. For private party sales it could be worth higher (a few years back I sold a rebuilt salvage 1991 240sx for about $500 over KBB private party in good condition).

    Whether or not you want first party coverage (i.e. comp or collision) would really depend on how much it is worth. Compare that with how much premium you shell out just for comp/coll each year then make your decision on whether or not to carry the coverage. To me, if you shell out more than 25% of the car's value for comp/coll each year then ditch the coverage. Save your money.

    I have had a few old cars where I only carried comp. Having comp only added maybe $100 to my premium and if someone were to steal my car or if it were flooded in a hurricane at least I'd have SOMETHING to put towards another vehicle. No collision was a bit of a gamble. I'm a safe driver so I figured whatever accident I may get in won't be my fault so the other person/insurer will pay to fix my vehicle.
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  14. #14
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    Quote Originally Posted by nsomniac
    What are your full coverage premiums / month? What have the quotes been like for liability? Those should lead you to a decision based on math. Now that's in a normal situation. With a salvage '98 A4 in fair condition, you'd be damn lucky to get $1k out of it. After your deductible, how much is left? How many months of the savings with liability vs. full coverage would it take to make up that $500? Seems like the decision is pretty easy here.
    This is important stuff.

    If the car is only worth $1,000 and your deductible is $500, then the most that you're going to get if the car is totalled, is a $500 check. So if (for example), your full coverage is $100 a month and liability only would be $50 a month, your the difference between the two is $600 a year (more than the insurance company would give you if your car was totalled).

  15. #15
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    Quote Originally Posted by A1an
    A rebuilt salvage vehicle is typically worth around 50% of what an equivalent is without the branded title. Sometimes it is worth more, sometimes less depending on the market.
    You sound like you have some experience in this area, possibly even vocational experience. But I am going to respectfully disagree on the "50%" thing:

    Salvage vehicles are only worth what someone is willing to pay for them, and unless you seek out an exceptionally ignorant customer, I would be surprised at anything approaching 50% of the book value for a non-salvage vehicle.

    ...(a few years back I sold a rebuilt salvage 1991 240sx for about $500 over KBB private party in good condition).
    ...like that.

    In this economy, values for even non-salvage vehicles is pretty weak, and the market is flooded with non-salvage vehicles. With so many non-salvage vehicles available at low prices, there's really no reason to have to settle for a salvage vehicle, and as a result (in my experience), they're pretty much worthless. The only way that I'd buy a salvage vehicle is as an economical way to obtain a donor vehicle for parts, keeping in mind that I'll have to pay the disposal costs to have it hauled off after I've harvested the parts that I want. And it would probably be at the rate of no more than ten cents on the dollar.

  16. #16
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    Quote Originally Posted by RIS
    You sound like you have some experience in this area, possibly even vocational experience. But I am going to respectfully disagree on the "50%" thing:

    Salvage vehicles are only worth what someone is willing to pay for them, and unless you seek out an exceptionally ignorant customer, I would be surprised at anything approaching 50% of the book value for a non-salvage vehicle.



    ...like that.

    In this economy, values for even non-salvage vehicles is pretty weak, and the market is flooded with non-salvage vehicles. With so many non-salvage vehicles available at low prices, there's really no reason to have to settle for a salvage vehicle, and as a result (in my experience), they're pretty much worthless. The only way that I'd buy a salvage vehicle is as an economical way to obtain a donor vehicle for parts, keeping in mind that I'll have to pay the disposal costs to have it hauled off after I've harvested the parts that I want. And it would probably be at the rate of no more than ten cents on the dollar.

    The 50% isn't a scientific number...it is merely an average of what I have seen over the years.
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  17. #17
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    Quote Originally Posted by A1an
    The 50% isn't a scientific number...it is merely an average of what I have seen over the years.
    Fair enough. I'm just saying that my experiences have been somewhat different.

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