Collision coverage or not

[Cloud]

Hi guys,
I've been thinking of getting an nsx(97' / 98') mainly for pleasure rides. It will be my first and only car in the states so there's a probability that I'd park it in places like shopping malls, theatres but not too often. So here's the question, considering that I wouldn't be using the NSX too often (since my school is only 10 minutes walk away from home) should I get the collision coverage? I'm only 20 years old and the collision coverage costs me $2000 per 6 months which is alot of money. Well, I'm not a careless driver but things can happen :frown:

p/s: English isn't my native language and as I've noticed from previous posts, some members get annoyed by bad grammar or spelling so please excuse me for any of those mistakes i might have made :tongue:

 

[heySkippy]

The purpose of insurance is to assume a risk you are unable or unwilling to assume yourself. You should weigh the known cost of coverage against the unknown likelihood something will happen and what that might cost.

$4000 a year for collision coverage? Well, that's more than a few door dings would cost to fix but way less than a catastrophic accident. Probability of door dings is high. Probability of catastrophe is low.

What only you can decide is the probability of a catastrophic occurrence and if you're willing to gamble on it. Personally, I'd spring for the insurance because I know I'd be driving more than you seem to think you will. I'd also be doing some research on how to get that insurance cost under control. $4000 a year for collision is nuts.

 

[djskyy]

you don't want to take that chance, minor fender benders can cost thousands on the NSX...better safe than sorry...Unless you know the car is stored in a safe garage where you know it's not going anywhere....

 

[ak]

If you can't afford the insurance, then you sure won't be able to maintain it. Buy it when you get more money.

 

[DocL]

There is no way I'd an NSX on the streets without collision/theft coverage. A light hit to the fender and hood will cost $5,000 to fix if you are using brand new parts, maybe $2,500 with used hard to find parts. If you can't afford the insurance coverage I recommend that you don't buy an NSX.

The only car that I ever owned that didn't have collision and theft coverage was a 1990 Miata that I paid $1,500 to buy. I figured that if it sustained more damage than what I paid for it that I would be able to sell it as a parts car.

 

[steveny]

I paid for two years on a RX-7 that I rolled with no collision. I was about your age and I thought I would just save the insurance money. I learned a very good lesson....always have insurance or don't have the car.

 

[nsxtasy]

Let's say you spend $45K to buy the car, and you don't buy collision coverage. If your car is in a collision and it incurs $30,000 of damage (this can easily happen), so that YOU have to pay for the cost of fixing it... will you regret not buying the collision coverage?

 

[Cairo94507]

It is pretty simple- no insurance on car, no drive car.

 

[ibDursty]

It is pretty simple- no insurance on car, no drive car.

Well, he pays the 45k in -cash- for the car he's not required to have collision insurance, just liability insurance. I'm sure liability only would probably be less that $1,000 a year.

He just has to make the gambling decision is the car going to have major damage or get totaled in the next 5 years or so. $3,000 (4k-1k) x 5 years is a total of $15,000 insurance payments for the additional collision coverage. Note, after age 25 the insurance bill should drop by at least half if no tickets or claims.

Now, is there a greater than a 1/3 chance that nothing will happen to the car in the next 5 years? (Insurance cost 15k vs. NSX's insured value of 45k) That's the decision that he has to make. Of course over the 5 years the cars value will diminish somewhat, so it might even be a little more favorable not insuring given the cost of the insurance.

Most of the NSX owners are only paying $800 to $1300 per year so it's silly not to insure, but as insurances prices skyrocket you have to start looking at the foods of a catastrophe actually happening.

 

[TigerNSX]

Please don't worry about your English. It's excellent.
English is my second language, too, but I love to participate in this forum and community.

Per your question, it would be a big mistake not to get your nsx fully insured. You do not want to take any risks. If you have financial or other concerns, I believe that it would be wise to drive a car that are a bit less fancy than NSX.

 

[DocL]

The other option not mentioned is you can have collision insurance with a high deductible which will lower the rate. Try going for a $2,000 deductible, or even higher, if the car isn't financed and if the insurance company allows it.

 

[H-carWizKid]

Welcome to my world- The wonderful world of collision investigation!
My experience suggests that there are a whole lot of folks out there tooling around without adequate insurance, and in many cases no insurance at all.
You might be surprised who they are too...

That BMW M5 sitting next to you at the stoplight? Look at his tires, are they balding? Could it be that he was in the big tech boom, then got laid off like so many others and now can't afford to maintain or even insure his expensive toys? He has taken a pretty big ego hit, so he decides he can get his manhood back if he takes off from the light in his big bad bavarian muscle car and cuts off the guy in that sleek little japanese sports car...
Guess what? If he hits you, and all you have is liability- you're F---ed.

You parked the new NSX in the parking lot, and some moron in an big ole peek-up truck "doesn't see" your low slung aluminum masterpiece in the parking space. He rear ends you with that big mo-honkin "safari brush bar" he has bolted to his frame... He gets out, looks around, but sees no witnesses, and no damage on "Bohemeth" so he climbs back up in that scooter and rolls off into the sunset, spitter in hand- Well guess what- you're F---ed.

Maybe you are just innocently sitting in traffic, and a dude rear ends you because he was too busy checking out the babes in the convertible sunfire driving in the lane next to him. You get shoved under the car in front of you, and he ends up hitting the car infront of him, then rolling sideways off of your car into the car next to him. No problem, Romeo is at fault right?
But when you get out of the hospital, you discover that Casanova has the lowest available limits of liability/ bodily injury available in your state. As it turns out, those physical damage limits are too low on a per incident basis to cover the replacement, and repair of all the vehicles involved (including your probably totaled NSX)... Soooooo
your NSX doesn't get replaced, you have to hire representation to go after what you can get from his insurance company- The lawyer is going to keep part of your settlement to cover his fee- and guess what? You're F---ed.

Buy adequate insurance. Trust me, I could write these scenarios all day- and everyone of them has happened to someone my company insures. (the victims didn't all drive NSX's, but you get the point, it could happen to you)

Happy motoring,

Philip

 

[docjohn]

Ahhh,,, the risk taking ,invin :wink: cibility of youth!I think you get the message!

 

[CDX_NSX]

Don't buy a car that you can't afford to insure unless you can afford to not insure it.

 

[H-carWizKid]

Ahhh,,, the risk taking ,invin :wink: cibility of youth!!

Or the brash willingness to learn the hard way...

Not me!

Thus- even my (paid off ) 96 Lexus with hail damage, and no paint on the hood has the full boat of coverage, and I am the most paranoid NSX driver in the great state of Texas when I get behind the wheel (Dad has coverage, I just don't want to be the guy that wrecks it).

Philip

 

[NSXDreamer2]

Cloud, in my early years, all my freinds are Asians, international students... so I do know how you feel. I bet you must have either no good credit, nor trackable good driving records(our poor US system only account it for years you've got your license, how many tickets, or simply gender... ummm, come to think of it, they should start asking if the insurer is homosexual too...) I'm very disgusted of the way law-enforcement and insurance companies tied up to screw us over. So in my early years, I had driven my car for 3 years without any insurance. (Well, my dad does insue the cars though, and he's confident that I won't get it in accidents.) Well, I did managed to get it unscratched, and no tickets... then I procceed with my nsx purchase with proper insurance... and god knows I'm lucky.

I had 2 minor incidents last year in late summer, 1. A drunk dude kicked my qtr. panel and created a size 14 shoe dent. 2. Then a month later, I was parking at my work (I worked at a warehouse complex for 4 years) Some guy next door backing it out in front of a Semi as I'm going down the middle of the parking lot and basically dented my wheel, front fender all the way to the qtr. panel. I waxed it afterwards, for most people they couldn't even see it if I don't point out the dent and scratches.

These 2 incidents cost my insurance a little more than $3000. Guess what, if I don't have the insurance, not that I couldn't afford to pay the $3000, but I could sure say I will not afford to go to this year's nsxpo, or my suspension mods, or maybe I couldn't go to track days due to the lack of disposable funds...

CDX basically nailed it...

Don't buy a car that you can't afford to insure unless you can afford to not insure it.

However, if you are going for a low 20k nsx, and you make sure that you are not going to take it recklessly on street. You also make sure that you MUST save those money that would go to insurance otherwise in the bank for "rainny days". By all means, save that $4000. I would also sugggest you find one nsx that's mechanically sounded, but less than perfect body, so when you won't get too emotionally attached if in case it got vandalized at school. (I guessed it'll happen pretty often with such a car, with intention or not.)

 

[nsxtasy]

Well, he pays the 45k in -cash- for the car he's not required to have collision insurance, just liability insurance. I'm sure liability only would probably be less that $1,000 a year.

Not necessarily. Liability is usually the most expensive part of the policy. And it's not something that you really want to skimp on, either.

I agree with the suggestion to consider higher deductibles to lower your insurance cost.

However, if you don't think you can afford a few thousand dollars a year to insure your NSX, can you afford to keep it in good shape, given that a clutch replacement or air conditioning repair can also cost a few thousand dollars?

 

[Cloud]

Got a pretty good online quote from geico for a 98 NSX for around 1.9k per 6 month with $500 deductable collision. If nothing goes wrong i might just be able to get an NSX :biggrin:
For a second there, I'd thought that I had to settle with an RSX-S which seems to have a serious tranny grinding issue or the 3000GT VR4. Now to think of it again, the NSX might be worth it, it just seems so problem free. Not to mention the wonderful NSX community we have here, just a simple question and i got 17 replies :wink: thanks guys

 

[brahtw8]

An NSX is considerably cheaper to insure if it is a 2nd car. I don't know if you plan to have another car, but if not you should look into it.

You might save enough on the insurance to pay for an old Honda (other than the NSX, LoL), and you will like having a car you can take to places you don't want to take your NSX.

 

[swbatte]

Here's a little tip when shopping for insurance in your 20's.
Some insurance companies recognize that a young guy in his 20's is dying to buy that red sports car he's always wanted, and offer him insurance for say a couple of hundred a month. Then 3 or 4 months later, after selling him the coverage announce that their underwriters have re-evaluated the policy and that the new premium will be $500 per month.

They wait until you buy the car and have to pay the premium before they tell you the REAL price.

In other words beware of insurance bargains.

This exact thing happened to me 7 years ago when I bought a resale red 300zx off of a collector. I had to sell it. I bought a sports car I could insure and now own my NSX fully covered and love it.

 

[NSXDreamer2]

An NSX is considerably cheaper to insure if it is a 2nd car. I don't know if you plan to have another car, but if not you should look into it.
You might save enough on the insurance to pay for an old Honda (other than the NSX, LoL), and you will like having a car you can take to places you don't want to take your NSX.

This is a very good idea. If Parking space and licensing is feasible, why not getting an used Civic/integra for less than $5000.00 used it for bad weather days and you know one of those days you slept-in rush to school- just park it somewhere-get to the class, and not worrying anything. Then register the nsx as a weekend car. I guranteed you are not going to save any money... but you do have another car for totally different purpose.

One thing I don't understand is that if you are going to spend 45k on a 98, why are you thinking of RSX, 3000GT altenative? My dad's own a 96 3000GT VR4 and I can say that a stock, 91 nsx eat it alive. Don't even mention Reliability. (our VR-4 had treated us good, but it has its 3rd tranny now. And this new one is way, way way worse than previous one.)

I would say, (this is a bold statement) a well-maintained early 91-93 nsx is the biggest bargain of the whole nsx experience. Not saying a 98 is not better, but in your situation, seems like getting an older one will be more logical. (Especially the earlier model depreciation is almost next to none in last few years.)

 

[Zennsx]

Another thing to consider is that a financial institution will not allow their collateral to be at risk (ie) no collision insurance. Unless that institution is mom or dad or self.

And you guys think not replacing a timing belt within its recommended guidelines is risky :wink:

 

[nsxtasy]

An NSX is considerably cheaper to insure if it is a 2nd car. I don't know if you plan to have another car, but if not you should look into it.

Good point.

Also, many insurance companies give you a multi-policy discount if you have both your homeowner's (or renter's) policy and your automobile policy with them. Ask about discounts for this, and take it into consideration in making your decision.

(Furthermore, if you've had a homeowner's policy with a company for quite a few years, they may be willing to make an exception and insure an NSX, even if they might not do so for new customers.)

 

[caseycarson]

Without a doubt get full coverage. You get liability only on a 1993 Civic. You get liability only on a 1987 Taurus. You get liabilty on cars that if they get totalled, it's really no big deal. An NSX is DEFINITELY a car you would want to insure to the maximum.