The New Math of Driving Your Car Till the Wheels Fall Off | Hacker News Reader

The New Math of Driving Your Car Till the Wheels Fall Off

wsj.com

1 pointharambae5 comments

One problem with this strategy is that if someone crashes into you, an older car will likely be totaled, and the amount the insurance company gives you is not even close to what it will cost to replace the car. If you have taken care of your older car, it will be nearly impossible to find an equivalent older replacement. I'm sure they exist, but people are not selling them - they're driving them!

I was rear-ended while stopped in 2021, and received $8K for my 2003 Accord with 90K miles that was in very good condition. It cost me $28K for a 2018 used Acura with 35K miles. My insurance company only wanted to pay me $6K, but after scrutinizing the 3rd-party reports they used to calculate replacement cost, it was clear that the vendor's valuation software was shit - to the point where, when something should have been a credit in my favor, they made it a negative, so I got double-dinged. The insurance company even got the vendor on the phone, and the vendor admitted that the report didn't make any sense!

This is true. The inevitable replacement is going to take a toll. Finding one itself would be a pain, and the money would gigantic compared to what was paid before. One strategy is to plan for it and invest for it. With such long Windows, you could have enough with very little but consistent investments. If you are going to drive as long as you can, then keep on setting aside a car payment. Even when it is not needed.

The cheaper insurance can offset this. If you pay $30/month for minimum coverage , versus $300 for comprehensive, that’s 3200/year. If you get totaled only once every three years, you’ll have 10k toward a new car.

Not sure why you're expecting insurance to help pay for a 2018 car to replace a 2003 car? $6k is more than it'd costs to buy another 2003 car.

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