[Shoe]

I recently dropped all comp and collision on my car (my car is only worth ~$4k so if i total it I just plan to buy a new one). I still have liablity and some form of underinsured coverage incase someone hits me who is not insured, which comes out to approximately $200 every 6 months (about $33 a month). Also, assuming the accident is not my fault, damage to my car would still be paid for by the other driver's insurance. Comp/collision is only for damages you are at fault for. I guess you could say I am willing to take on the risk of $4k (minus any decutibles and insurance premiums I'd have to pay), that I won't cause any accident that I would be found responsible for. I have already saved a good portion of my car's current value in reduced premiums that I am putting what I would have paid the insurance company into a fund that will go towards a new car and/or cover any expenses I may incur from my reduced coverage. If you have the discipline to do this I really think that is the way to go.

for those of you with low deductibles (around $250), I would highly recommend raising your deductibles to around $1000. In most cases, the rates you save will more than make up for any increase in deductible you will have to pay, often within just a year or 2. Unless you get in a crash per year or something ridiculous like that, you should have high deductibles. In the long run, you'll end up saving much more than you have to pay out in higher deductibles from potential future crashes. Put the amount you save each month into an online savings account as a type of car emergency fund. If you never get in a crash, eventually you can stop contributing to this fund or maybe even buy a new car with it someday.