When Should You Drop Car Collision Coverage?

Saving money where you can make sense for everyone. With the costs of everything going up, it’s inevitable that most everyone will search for ways to reduce expenses. One expense many people typically consider reducing is their car insurance coverage. With the average driver having an accident every 10 years, you may think that your car insurance coverage can be trimmed down a bit. If you never had an accident till now, you may not see the value in keeping your collision coverage. But before you reduce your car insurance, make sure it’s the right move. Find out when you should drop this coverage and get free auto insurance quotes online from our website.

free auto insurance quotes onlineYour driving history and the type of car you have is taken into consideration when your insurance company determines how much you are going to pay for collision coverage, which is why some people consider removing it.

For starters, if you have a loan on your car, it is likely you will be required to have collision insurance per your purchase agreement with the company that financed your car. In this situation, having collision coverage is a must-have. After you have finished financing the car, your collision coverage becomes optional. The following scenarios may help you determine the worth of your collision coverage.

You have enough money. If you are financially established, then you may not benefit from paying extra for collision coverage. You could pocket the money instead, and cover the expenses yourself in the event of an accident.
Your car doesn’t have a high resell value: Cars that are older may cost more to repair than they are worth. If you check the current cash value of your car and find that it’s simply not worth the extra expenses, then you may want to drop this coverage. Keep in mind that cars are affected by over-time depreciation.

You don’t drive the car much: 
Clearly, the more you drive, the more likely it is you will have an accident. If you are not driving a car much, then it’s possible you don’t have to keep active collision insurance because the odds of getting into a car accident are really small.

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<a href=”″ rel=”author” title=” When Should You Drop Car Collision Coverage?”>by C Gurgu</a>