I'm wondering how high F-type drivers risk tolerance is. Meaning do you take out the full comprehensive insurance (with collision coverage) for your F-type every year or do you only take the minimum mandatory by law insurance?

Let's hypothetically assume the former costs $2000 and the latter $300. With the latter it means of course that if you cause damage to your own car, you have to pay out of your own pocket to repair it.

It's a one year old car, currently valued at $80k.

Let's assume you work from home and only do around 5000 miles per year. And you have Igla/Ghost immobiliser and GPS tracker installed.

Would you still buy full comprehensive insurance in this scenario? Or would you invest the $1700 difference in the stock market each year and this way offset the potential future repair costs?

 

There are a lot of 'depends' here. Do you have the financial resources to cover damages if you take the minimum? Do you have an umbrella policy with your HomeNAuto insurance company? 'regular' auto insurance (vs 'agreed value') means that every year the value of your car goes down and the 'totaled' percentage also falls to a lower threshold. Jaguar body repair requires a special aluminum network

https://www.jaguarcollisionrepairnetwork.com/

Consider your own driving history, the area in which you live/drive and what you plan for your ownership of the F. We just moved our 2018 Corvette, 2017 F to the Hagerty 'agreed value' policy that my 69 E type has had for 30 years. We have two other vehicles to drive and there are only the 2 of us. Equal coverage, no deductibles and we are saving $400 a year on BOTH the 2018 and 2017. We have no plans to sell any of them in the near future, so this will work for us.

 

OP seems to be more worried about theft however we work from home and drive less than you do with our F-Type, about 3K miles a year tops, and have comprehensive in case some idiot without insurance hits our new 2024 F-Type. Too many awful stories out there about expensive new sports cars being hit by drivers with no insurance.

 

Agree 100% with this. My weekend cars are all extremely low mileage vehicles, but I don’t take chances. My F-Type insurance also guarantees I’m paid full MSRP from 2023 in the event of a total loss or write off.

 

I have comprehensive on my 2015 F-Type R with a $1000 deductible.

Many years ago in a BMW 330ci, I once made a split decision to take an entrance to a highway when it was too late. Ran over the curb on the median and knocked the chassis off the suspension (among other damage). It was only worth $15k at the time, and the loan had already been paid off. The insurance company marked it as totaled and gave me a check for $15k minus my deductible. I was glad to have had the comprehensive on the car.

 

This ^^^^^. And -- in my area --- auto theft of higher end cars is on the rise. New electronic gizmos thieves use nowdays are very good at disabling alarms and bypassing igntion locking software.

 

Thanks everyone. I'd like to point out for those who might think I can't afford the full blown insurance that it's not so much about affording it as it is about the opportunity cost. What are the odds I'm going to have claims in ten years totalling $15-20k which is how much I need to pay for the full comprehensive insurance?
Not investing this money and making twice as much in the process is called opportunity cost. So it's more about odds then affording it. This is where my dilemma lies.

 

Self-insuring is ALWAYS the way to go IF AND ONLY IF you have paved the way for it through prudent financial planning, that is, savings. I know very few people seem to save anymore, but it is THE key to setting yourself up for future success.

If you have an USD80K asset at risk and decide not to insure, are you able to comfortably absorb that loss? I think you would need at least USD500K unencumbered in savings [cash or cash equivalents]. If not, you can always partially self-insure by getting coverage for the car itself [passing on the extra nonsensical coverages] and raising your deductibles.

Believing that putting $1700. per annum in the stock market to cover your risk is a bit short-sighted. Even if the FED decides to keep the inflation party going indefinitely, it's not going to work out very well if you're counting on a 7% return. You might wish to align yourself with crypto folks who believe that their method of creating something out of nothing [transferring wealth from the ignorant] is more profitable.

From where I am looking, USD1700. is a small price to pay to protect yourself at the moment.

 

Thank you for the insightful answers.

 

11 years ago while driving my wife's new Mazda Miata, a lady blew through a red light and totaled the car. 3 years later a guy pulled out of parking lot and totaled my Jag S-type R sedan, Four years ago a guy came around a wide-swing corner and took out the side of my BMW coupe. Last fall, a girl pulled left into a parking lot while I was driving straight in my F-type. Those no-fault accidents cost my insurance companies around $57K. The Jag event was a 7mph "kiss" that broke one headlight and cracked the other when the hood shifted. It cost my then new insurance company nearly $16K. I gladly pay the $3700 a year for my four automobiles as I could never self-insure against all of the effing idiots that have no insurance, no license or maybe are driving a stolen car. It's enough just to self-insure against the aging of certain mechanical or electrical issues when out of warranty. Ask me how I know.......I've had a Porsche 928 for 25 years and after putting 35K into restoration, I'm only $7K away from having a $25K car. I paid cash for my Jaaaag and dont owe any money on my cars, my house or my business. Although I could afford it, I would never, ever, go without collision or comp on my vehicles.

 

You can be the best driver in the world but how can you guarantee the people around you are? That’s how I would look at this.

 

On a side note we don't have comprehensive on our 10 year old Nissan CUV that is more of a beater car at the moment.

If it dies, it dies.

 

Unless you can afford to lose that car tomorrow and not feel it financially the idea of not having full coverage is borderline insane. Things happen to people all the time. So many scenarios could play out it’s not funny. It’s very easy to think that things won’t happen to you, but reality is something entirely different.

I was driving to work one day. Split second later I’m in a ditch almost wrapped around a pole. A woman fell asleep at the wheel and crossed head on into my lane. Truck totalled. While in the rental after that accident I almost had 2 other people hit me. It was so bizarre. That was over 6 years go now and it’s been crickets ever since.

To each their own but I’m just gonna say it: Bad idea.

 

Sure, people cause accidents. But these people will pay to fix my car if it's their fault, aren't they? Unless I'm missing your point... ​​​

That's terrible. Did woman's insurance company pay for your damages since it was her fault?

 

I had a 2016 F Type which was totaled by another driver who was at fault. I have full comprehensive insurance and glad I did.

If you're trying to think of the odds and opp cost: let's say there's a 25% chance of accident, a $20k value. If you saved the $1700 insurance and put it in market every year and made 10%, it would take just over 7 years to reach breakeven. If you made 7%, it would be just under 8 years. It's not perfect because of inflation, amount your insurance cost will change each year, how much the f type depreciates.

Some things are worth the piece of mind and this is probably one of them

 

In Ontario it’s a “no fault insurance” model. As such, it is always your insurance that pays…Whether you are at fault or not. I always found this weird, but it is how it works.

I have full replacement value for the first 5 years on my new vehicles, but outside of that you always lose money even if it’s not your fault. Take that example where the sleeping chick took out my Toyota 4Runner. Older than 5 years, great shape, rust proofed every year, low miles. Worth way more to me than it was worth. I got paid by insurance but had to come up with 10s of thousands of dollars to replace it with a brand new 4Runner.

 

Not if they're uninsured and have no money ....

 

Yup, that type of thing falls under my “So many scenarios could play out it’s not funny” statement ;-0

Again, bad idea OP.

 

I wonder how is this possible? Isn't it mandatory that every registered car has to have an insurance? Is it even possible to register a car without an insurance?
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Genuinely curios as here in EU I've never heard of an uninsured car in 50 years.

 

You do realize that all kinds of crazy people drive around without insurance, right?

People are not supposed to steal, but they still do.