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Old 18.04.2016, 22:06
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Reduce my car Insurance to liability only ?

I could not find an answer to this in previous posts so I will ask it here.

I was wondering what other folks do with regards to deciding to only have liability insurance and not having the collision/physical insurance on a car.

I feel that I am over-insured, paying 15% of current value of the car in premiums. My poilicy is up for renewal so I have a window to change the policy.

Here are the facts:
Car is 11 years old. New Price was 38 000chf; Current Value ~8000chf.

Insurance Premium :
Liability 450chf;
Collision 310chf .
Partial damage 440chf. (Theft; Fire; Animals; Hail; Meteors etc)
Total : 1200chf/year

For Damage/Collision: Deductable 1000chf , Pay out to current value of car.(8000chf)

I have shopped around and other companies seem to be in the same ballpark.

Is there a magic ratio of Premium:Replacement value when it stops making sense to insure?
Any expert guideance? What is the normal behaviour?

Thanks
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Old 18.04.2016, 22:19
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Re: Reduce my car Insurance to liability only ?

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I could not find an answer to this in previous posts so I will ask it here.

I was wondering what other folks do with regards to deciding to only have liability insurance and not having the collision/physical insurance on a car.

I feel that I am over-insured, paying 15% of current value of the car in premiums. My poilicy is up for renewal so I have a window to change the policy.

Here are the facts:
Car is 11 years old. New Price was 38 000chf; Current Value ~8000chf.

Insurance Premium :
Liability 450chf;
Collision 310chf .
Partial damage 440chf. (Theft; Fire; Animals; Hail; Meteors etc)
Total : 1200chf/year

For Damage/Collision: Deductable 1000chf , Pay out to current value of car.(8000chf)

I have shopped around and other companies seem to be in the same ballpark.

Is there a magic ratio of Premium:Replacement value when it stops making sense to insure?
Any expert guideance? What is the normal behaviour?

Thanks
I only had liability insurance for the last 30 years, Owned a Porsche & BMW for most of the time. I guess I came out positive by 30,000 over the years, if your a careful driver go for it.
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Old 18.04.2016, 22:26
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Re: Reduce my car Insurance to liability only ?

Normally it's reckoned that vollkasko (fully comprehensive) is better for the first 6 years and then teilkasko (third party, fire and theft) for the remainder. Obviously it depends on the value of your car and how much "peace of mind" you want!
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Old 18.04.2016, 23:11
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Re: Reduce my car Insurance to liability only ?

No kasko beyond 8, or used vehicles.

Tom
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Old 18.04.2016, 23:55
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Re: Reduce my car Insurance to liability only ?

Until this month, I paid Teilkasko for my now 15 year old VW Lupo.
Reducing it to liability-only saves a 100 CHF or so per year ;-)

Savings on more expensive cars are larger, of course.

How about stuff like damages occurred in the parking lot?
Or vandalism?

Those are usually insured in packages that require a Teilkasko at least...
And the larger the car, the easier these damages can occur.

Next car, I will definitely downgrade the insurance earlier.
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Old 18.04.2016, 23:58
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Re: Reduce my car Insurance to liability only ?

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Until this month, I paid Teilkasko for my now 15 year old VW Lupo.
Reducing it to liability-only saves a 100 CHF or so per year ;-)
Mine save 400-900, depends on the vehicle (400-600 on bikes, 900 on the Boxster).

Tom
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Old 19.04.2016, 00:33
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Re: Reduce my car Insurance to liability only ?

Yeah I would remove it, of course some people like to be overinsured. I think most people use it for parking damages, but since you have an old car you can also keep those should you have one.
Not so sure about the theft and fire, it's really up to you and your situation, but the fire risk you can't reduce.
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Old 19.04.2016, 08:42
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Re: Reduce my car Insurance to liability only ?

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Normally it's reckoned that vollkasko (fully comprehensive) is better for the first 6 years and then teilkasko (third party, fire and theft) for the remainder. Obviously it depends on the value of your car and how much "peace of mind" you want!
I'll ignore that advice - my 6 year old car is now worth around about its new price

In all seriousness - it is a personal choice.

An individual has to assess what their exposure to risk should be - if they have an "at fault" accident are they in a position to replace the car and accept that the money they saved (over the long term) in premiums will cover that? If not - they insure the risk.

(which is the basis for all insurance )
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Old 19.04.2016, 12:08
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Re: Reduce my car Insurance to liability only ?

Dwelling exactly on same dilemma. I decided to pay last half yearly premium and drafted cancellation letter that needs to be sent with 3 months notice period.
Some points:

- if you lease the car you are obliged to pay full casco therefore less flexibility,
- once you own the car you can reduce it to partial casco or no casco (weigh the risks )
- if you want to get rid of existing insurance asap, then exploiting the legal loophole by selling your car to "other party" is best way forward (Tom will explain in detail )

There's no best way to go - it's your call. The Murphy's law at work. When I had top insurance, nothing usually would happen (you need it the least). When I reduced premiums to cheaper option, stuff would start going wrong (you need it the most).
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Old 19.04.2016, 12:11
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Re: Reduce my car Insurance to liability only ?

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Here are the facts:
Car is 11 years old. New Price was 38 000chf; Current Value ~8000chf.

Insurance Premium :
Liability 450chf;
Collision 310chf .
Partial damage 440chf. (Theft; Fire; Animals; Hail; Meteors etc)
Total : 1200chf/year

For Damage/Collision: Deductable 1000chf , Pay out to current value of car.(8000chf)
You're definitely overinsured. Save the Premium for Damage and Collision for a new car. The insurance for liability is mandatory.

Cheers
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Old 19.04.2016, 16:46
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Re: Reduce my car Insurance to liability only ?

Agreed with PatrickH; you are definitely over insured on your car.

Just to be clear, do you own the car outright or are you still making payments? How long are you going to keep the car?
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Old 21.04.2016, 12:28
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Re: Reduce my car Insurance to liability only ?

I have the same concern as OP and I want to downgrade my car insurance. I have paid 2016 fee. Do I have to wait until 2017 to ask for a new contract?
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Old 21.04.2016, 14:00
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Re: Reduce my car Insurance to liability only ?

You should check your contract for the period of time? Contracts can differ in length; you may pay yearly insurance premiums but the contract may be 1-5 years long.
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Old 21.04.2016, 14:07
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Re: Reduce my car Insurance to liability only ?

I'd suggest that the decision also depends on your ability to self-insure the value of your car. I.e., if you can afford to repair/replace your car in the event of an accident, then you are likely to be better off in the long run only taking out third-party insurance. But if that expense would be catastrophic, then it would be better to have fully comprehensive.
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Old 21.04.2016, 14:14
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Re: Reduce my car Insurance to liability only ?

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You should check your contract for the period of time? Contracts can differ in length; you may pay yearly insurance premiums but the contract may be 1-5 years long.
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I have the same concern as OP and I want to downgrade my car insurance. I have paid 2016 fee. Do I have to wait until 2017 to ask for a new contract?
You should look for a clause in your insurance policy between the lines "with yearly renewal or yearly cancellation possibility" (cannot recall exact wording pertaining to that specific clause).

It was in my ZURICH insurance drafted in English. The best is to contact your agent/provider for clarity.

I paid second installment of my policy and have drafted a cancellation letter yesterday (signed today). I will send it tomorrow via registered letter which is more than 3 months in advance. Better now than forget it later. (3 months notice period).
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Old 21.04.2016, 15:27
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Re: Reduce my car Insurance to liability only ?

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You should look for a clause in your insurance policy between the lines "with yearly renewal or yearly cancellation possibility" (cannot recall exact wording pertaining to that specific clause).

It was in my ZURICH insurance drafted in English. The best is to contact your agent/provider for clarity.

I paid second installment of my policy and have drafted a cancellation letter yesterday (signed today). I will send it tomorrow via registered letter which is more than 3 months in advance. Better now than forget it later. (3 months notice period).
I am not sure what is in my contract so I called my insurer (baloisedirect) and he told me that he can change my contract immediately and refund me the difference!
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Old 23.05.2016, 11:28
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Re: Reduce my car Insurance to liability only ?

It all depends on how risk-averse you are I guess. I had a car with fair market value of about 3000 (paid about 3 times that much for it though). I decided that liability was sufficient since if something happened to it, it just would not be worth it to fix it.

I paid about 600 year.
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