<prompt> Human: I was talking to a co worker of mine today and he said that theres no point in me paying 100 dollars a month for collision insurance of a 5500 car with 1000 deductible.If, god forbid that car gets totalled, im gonna have to pay 1000 anyways, plus heaven knows how much ive payed in insurance before that.At that point i may as well take the L and buy a new car.Thoughts?Im a new driver 6 months, and am paying 240 per month on insurance, and collision is the biggest chunk of it, accounting for a bit less than half. Note: I own the car, paid off fully in one purchase. Im not required to have it, and as per my co worker, i really dont need it given my circumstances. Edit: If it matters, i have USAA, it was the cheapest i found shopping around.Assistant: What would you do if you got into an accident and your car was totaled? How would that effect you and your financial situation? Insurance is smart for some cases but sometimes its smarted to insure yourself. Human: I save about 800 a month, and have a nice emergency fund building. If, god forbid it was to get totaled i can replace it the next day in theory for a similarly priced car.  <response>: If you were a seasoned driver, Id say skip it... tougher call given you are a newbie and everyone makes mistakes... tough call, but Id probably bet on myself and skip it. In 3 years youll have saved enough on insurance to put a nice down payment on your next beater... 