Older TDIs: Collision Coverage or Not?

Mass. Wine Guy

Top Post Dawg
Joined
May 21, 2001
Location
Ipswich, Massachusetts
TDI
5-speed, 2015 Golf S 6-speed manual; 2015 Golf Sportwagen SEL 6-speed manual
I have a 2001 Golf and a 2003 Jetta wagon. Both tdis. The Golf is newly acquired because our old car, a nearly identical 01 Golf tdi, was in an accident. It was still quite drivable but my insurance company totalled it and gave us around $2,000 under our collision coverage. We then sold it to Keith at KMH Motors, who had the other 2001 Golf. We paid $2,200 for it, which included a new timing belt, exhaust work and some other stuff. It had fewer miles on it, too.

My insurance is due for renewal soon and I'm thinking of dropping collision coverage. I know that popular wisdom says to drop such coverage on cars 10 years old and up. But we might not have received anything without the collision coverage. And it did basically pay for another car.


With no collision, do you just hope that the other driver's insurance will reimburse you? Suppose that driver contests it, even if the accident was their fault?


Thanks.
 

fruitcakesa

Top Post Dawg
Joined
Feb 18, 2007
Location
Vermont
TDI
04 jetta 5 spd wagon
How big an extra cost is collision?
Why not drop the coverage and put the extra cash in a rainy day fund??
 

GoFaster

Moderator at Large
Joined
Jun 16, 1999
Location
Brampton, Ontario, Canada
TDI
2006 Jetta TDI
Collision only covers damage to your vehicle in situations where you are at fault. If someone hits you and it's their fault, you are still covered. It can take longer to get a claim approved (because the fault determination has to be worked out first).

Around here, insurance premiums are very high and become exorbitant if there is an at-fault claim on your record ... this basically means it isn't worth filing a claim if you can possibly help it (e.g. in a single-vehicle situation) and that means it isn't worth having collision coverage on anything unless you absolutely cannot afford to replace it or unless the vehicle is leased or financed and you therefore are required to have full-coverage insurance on it.
 

VeeDubTDI

Wanderluster, Traveler, TDIClub Enthusiast
Joined
Jul 2, 2000
Location
Springfield, VA
TDI
‘18 Tesla Model 3D+, ‘14 Cadillac ELR, ‘13 Fiat 500e
Full coverage on a 2001 or 2003 isn't worth it, IMO. The premium you pay won't justify the $4000 they might pay you if you total it. As mentioned above, even if you have it fully insured and total it, the premium increase following the claim will not be worth the payout on the vehicle. You're better off just covering the replacement cost yourself in the unlikely event that you damage your car.
 

White Passat

Veteran Member
Joined
Sep 21, 2014
Location
Austin TX area
TDI
CPO 2013 Passat TDI SEL June 2012 build date Purchased 09/14/14
went through this issue with my '07 Subaru and '08 Subaru. I cancelled the collision coverage after my '08 was totaled and the insurance company wrote it off for a lot less than I thought it was worth. The '08 had 135K miles on her and the adjuster said it wasn't worth repairing.
 

tdidieselbobny

Top Post Dawg
Joined
Apr 4, 2005
Location
Stafford,NY (WNY)
TDI
'03 Galactic Blue Jetta TDI, '15 Silk Blue Golf Sportwagen TDI
If you can afford to pay for a different car out of pocket in the event of an accident,cancel it. I've always kept full coverage on my vehicles,and am glad I did. My 17yr. old son was in an accident day before mine-he got ticket.Didn't look like much damage to his '01 Jetta,but it ended up totalled. Bought it back and fixed it-was always driveable,but being it was a total loss, can only have liability on it now. Insurance wasn't raised when my new 6 month period started in January,unless I'm gonna get dinged when new period starts in July. For how much it costs for each 6 month period,it's well worth it to me to keep full coverage on a vehicle,no matter how old it is. If I end up getting another 96/97 Passat,I'll do same thing.....but to each his own.
 

TDI smile

Veteran Member
Joined
Jul 11, 2012
Location
Edmonton, Alberta (b4 BC - LOWER MAINLAND = Chilli
TDI
2002 TDI (ALH) with 513,000 km. First Owner and very happy... No Problems, never left us stranded on the Highway. Average useage is about between under 4 ltr. and 5 ltr. Normal longdistance travel: 4.1/100
How big an extra cost is collision?
Why not drop the coverage and put the extra cash in a rainy day fund??

That's the way I went....After 200,000 km I put no collision on the car.
 

aja8888

Top Post Dawg
Joined
Dec 25, 2007
Location
Texas..RETIRED 12/31/17
TDI
Out of TDI's
If you are not going to put collision or comprehensive coverage on your old car, at least buy uninsured motorist coverage in case someone with no insurance hits you.
 

Mass. Wine Guy

Top Post Dawg
Joined
May 21, 2001
Location
Ipswich, Massachusetts
TDI
5-speed, 2015 Golf S 6-speed manual; 2015 Golf Sportwagen SEL 6-speed manual
According to the values I got from Kelly's Blue Book for both cars in good condition, the premiums are far less than 10 percent of each car's value. Same thing if both were in fair condition. I believe this indicates that keeping collision coverage is worth it. (?)
 

ZippyNH

Veteran Member
Joined
Apr 22, 2015
Location
Southern NH
TDI
2015 JETTA TDI SE
According to the values I got from Kelly's Blue Book for both cars in good condition, the premiums are far less than 10 percent of each car's value. Same thing if both were in fair condition. I believe this indicates that keeping collision coverage is worth it. (?)
Do the math...
And your accident history....then it comes down to risk tolerance... No real perfect answer..
I know we pay about 30% what mass residents pay for similar coverage in here in NH...
But if the payback for premiums vs the value of the car was 3 years, I would likely still dump it...
Having only been hit once in 20 years, I can self-insure that small risk....heck I carry a $1000 deductible...
So in my case I would be buying $1200 insurance ($2200 value-$1000=$1200) for x$ per month...
Reality is...if a $1200 bill appear tomorrow that I might be responsible for (last time I got hit, I paiid 0% and my insurance paid 0%, not at fault) I would not care....I can write a check easy.
Had a CRX as a 3rd car for many years...cost me $200 a YEAR to cover for liability only.....needless to say with a $1000 value that was all I cared to carry.
 

tdidieselbobny

Top Post Dawg
Joined
Apr 4, 2005
Location
Stafford,NY (WNY)
TDI
'03 Galactic Blue Jetta TDI, '15 Silk Blue Golf Sportwagen TDI
I also only have a $200 deductible-much easier to deal with than coming up w/ $500 or $1000 out of pocket-the difference in price wasn't that much,at least in my case.
 

greenskeeper

Top Post Dawg
Joined
Mar 10, 2003
Location
USA
TDI
1998 Jetta TDI
Prior to selling my 98 back in 2014 I still had full coverage on it. It was only $11 or so more per month.

Both trucks currently have full coverage as well.
 

AnotherPerson

Veteran Member
Joined
Oct 24, 2015
Location
New Orleans
TDI
1999 Beetle
If your car is in like mint shape. State Farm will allow you to get a set value policy. Basicly you pay for a certain value and if someone else hits you they will have to pay that set value. If the car isn't in like new shape or over 25 years old. Than no. You can't get good coverage.
 

ZippyNH

Veteran Member
Joined
Apr 22, 2015
Location
Southern NH
TDI
2015 JETTA TDI SE
I think a big part of it is the op's financial situation....
It's almost always cheaper to self-insure against risks you can easily handle....guess if your history shows you are gonna wreck...then get full coverage....but to insure a car worth $2000...you are gonna need a very low deductible...and that increase costs...lots...as does your recent accident....

Typically you pass on the risk through payment of $$ for risks that are beyond your ability to absorb....
For years I have had a $1000 deductible.....save enough every year to come out ahead....been 20 years, no payments...had 2 waived as non at faults on the policy...

Let's face it...a slight fender bender is $1000, add in a rental car for 3days-5 for rental coverage...
Your are not getting much protection on a $2000 car...you hit $1500 for about 75% value pretty darn quick..
No "correct" answer...cause there is no perfect match here....just "fuzzy" numbers based on probability....
Me...I would say a $2000 car is disposable. Sure...you can buy it back...or fix it...just like the last one...but at $2000, it's almost an impulse buy...not exactly spare change...but any car that runs and drives under $5000 and passes inspection and doesn't leave you stranded is a deal for most...

No liability, medical, and other coverages are a different story...there you are gambling with your future...everything you might ever hope to own could be taken in a judgement....so tread carefully.
NH is a state that DOES NOT REQUIRE insurance....funny thing is it's cheaper in NH than Massachusetts ...and we somehow end up with fewer uninsured motorist as a %....cause most everybody buys it...go figure.
 

Funguy

Veteran Member
Joined
Jan 18, 2005
Location
Front Range of Colorado
TDI
2015 Golf Sportwagen dsg and 2015 Passat 6 M/T
How big an extra cost is collision?
Why not drop the coverage and put the extra cash in a rainy day fund??
I agree with "fuitcakesa" advice.

Also, if you have been with the same insurance company for several years you should call some other companies like Amica and USAA to get quotes. I believe you will be VERY surprised at how much you can save. If you insist you can go to your old insurer and negotiate with the quotes from the new company for a new better deal but I get annoyed with the old company for not giving me a good deal in the first place.......

Note USAA if for veterans and their close relatives only
 
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IndigoBlueWagon

TDIClub Enthusiast, Principal IDParts, Vendor , w/
Joined
Aug 16, 2004
Location
South of Boston
TDI
'97 Passat, '99.5 Golf, '02 Jetta Wagon, '15 GSW
I finally dropped collision on my Wagon last year. Cost was about the same as yours. I still have liability of course and comprehensive with a $0 deductible for glass coverage. All my cars have the same coverage now, along with a $1M liability umbrella.

If you have an accident where you're at fault take the value of the car, less deductible, and then most companies will total the car if the repair cost is more than 70% of its value. So if my wagon is worth $4K, I'd get 70% of $3K towards repairs, or $2,100. Fact is if I have an accident I'm going to repair the car, and not totaling it keeps it from getting a salvage title. Failing that I'd keep it and pull parts for my other TDIs. In MA you're covered if you're not at fault in a collision, whether the other motorist has insurance or not.

At this point collision premiums on all 4 cars would be over $500, and they're simply not worth it. Seems unlikely I'd wreck all of them.
 

Paulinski

Veteran Member
Joined
Apr 14, 2013
Location
Brantford, Ontaro
TDI
09 Jetta Wagon Highline
The difference on older cars is negligible.

Since my hit and run accident I have full coverage on my 02 and 09 Jettas.

I received exactly $0 for my totalled Ford Focus because I did not have a full coverage and with hit and run (at least in Onterrible) there is no coverage.

Never mind the towing and storage bill that followed.
 

AnotherPerson

Veteran Member
Joined
Oct 24, 2015
Location
New Orleans
TDI
1999 Beetle
Just a note here, I was told by state farm that any money I put into the car I can save reciepts and if anyone hits me (I dont have full coverage) they will get that extra money for me. If I had full coverage they would pay above retail value because of the money put into it. This only counts for normal work not "custom" other than a standard paint job, etc.
 

aja8888

Top Post Dawg
Joined
Dec 25, 2007
Location
Texas..RETIRED 12/31/17
TDI
Out of TDI's
Just a note here, I was told by state farm that any money I put into the car I can save reciepts and if anyone hits me (I dont have full coverage) they will get that extra money for me. If I had full coverage they would pay above retail value because of the money put into it. This only counts for normal work not "custom" other than a standard paint job, etc.
Sure hope you got that in writing.
 

rwolff

Veteran Member
Joined
Mar 10, 2002
Location
Lesser continental mass, Tosev 3
TDI
None yet
Another thing to consider: how often do you rent cars (vacation, while yours is in the shop, etc.)? I have a rider on my policy that covers what would normally fall under LDW on a rental car, but it requires that I carry collision/comprehensive. I tend to rent a car a couple times a year for a few days at a time - collision/comprehensive (dirt cheap on a 20 year old car) plus the rider add up to less than what I would otherwise have to spend on LDW.
 

IndigoBlueWagon

TDIClub Enthusiast, Principal IDParts, Vendor , w/
Joined
Aug 16, 2004
Location
South of Boston
TDI
'97 Passat, '99.5 Golf, '02 Jetta Wagon, '15 GSW
A lot of credit cards also provide coverage. I always use my AMEX when renting cars, and they've actually had to pay out once, when I got T-Boned in Dallas at 1:00 AM on my way to my hotel from the airport.
 

gmcjetpilot

Veteran Member
Joined
Aug 18, 2008
Location
Memphis TN
TDI
2010 JSW TDI DSG Matalic Grey
Do you have $5000 or so to go buy a replacement car? If yes "self insure".
How likely are you going to get in accident? Do you drive like a nut. How
many accidents have you been in your life? Who is driving?

Medical insurance is really the thing. Paying for medical care is way more
than a car. Usually car insurance does not pay out unless your medical I
insurance is maxed out.

Insurance companies keep the value they will pay secret. You might find
they are a fair. Some insurance companies might give you $800. They will
never tell you until you make a claim.

On the other hand the premium may be very small. I have full insurance,
but I may drop it soon.... I have USAA insurance so I get a great deal.

However insurance is like gambling but hopping you never "WIN" or
make a claim. You pay for something you don't want to use. It is there
to keep you from financial loss. If you knew you'd never lose, you
would not even play the insurance game.
 
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