SHOULD YOU DROP COLLISION COVERAGE ON YOUR OLD CAR?
We're often asked when is a car so old that it's no longer a wise investment to continue buying collision insurance for it. The answer depends on your individual situation.
First, what's the true worth of the car? Any repair or replacement costs following a collision will be based on the value of the vehicle at the time of the claim. Also consider your deductible amount. For example, if your car is now worth $2,000 and your deductible for collision claims is $500, insurance will pay no more than $1,500 for your loss.
Once you've estimated the maximum that your policy is likely to pay for a collision, ask yourself whether the value of the car would create a significant financial hardship if it were totaled in an accident without insurance. Is the cost of collision coverage reasonable, considering the maximum you can receive at the time of a claim? Don't forget peace of mind if dropping collision will make you lose sleep at night over a possible loss, it's better to keep your coverage and get some rest.
If you're considering whether it's still worth insuring your older car for collision, call our personal auto representatives. We'll be happy to review your current coverage, give you the book value of your vehicle, and estimate the changes in cost of your insurance if you make any changes. Let us help you make the best decision.