Collision Coverage – How Do I Know When to Drop Collision Insurance: Looking for a guide on how to figure out when to drop collision coverage for your car? 

This post is here to show you the basic things you need to know.

Okay….let’s get started with Collision Coverage – How Do I Know When to Drop Collision Insurance.

You’ve raised your deductible.

You’ve gotten dozens of insurance quotes online. And you still feel like you’re paying too much for car insurance.

Maybe it’s time for a drastic step: getting rid of collision insurance.

Before we proceed further, let’s take a brief look at what collision coverage is all about.

What is collision coverage?
Collision coverage is the part of your insurance policy that pays for damage to your own car. It comes in handy when:

You hit another driver. Their insurance company won’t pay for the damage, because it’s your fault.
Another driver hits you but won’t admit fault.

If you get into a legal battle, collision coverage can pay to fix your car while the matter’s being resolved.

You crash into a telephone pole (or a building, or a tree, or an inconveniently placed boulder.) You can’t sue a boulder, so you’re on the hook for the repair bill.

In order to have collision coverage, you typically must also have comprehensive coverage, which protects you from other covered mishaps that don’t involve collision.

These include things like fire, natural disasters, hitting a deer, being struck by a falling tree and having your car vandalized or stolen.

Deciding when to drop collision coverage
Collision and comprehensive are optional parts of your policy — as opposed to liability insurance, which is usually mandatory and covers damage to other people’s property and injury to other drivers.

If your car is brand new, however, your lender may require you to carry collision/comprehensive.

See: how to get free business insurance quotes online

The best way to decide when to drop collision coverage is to run the numbers: specifically, how much you’re spending on collision/comprehensive, and how that compares to your vehicle’s value.

Financial experts often say it’s smart to drop collision when you drive an old car, then put your car insurance savings in a fund earmarked for emergency repairs or buying a new car.

However, when you’re trying to decide when to drop collision coverage, the answer really comes down to your personal finances.

“If you’re not absolutely sure that you could deal with paying for repairs or completely replacing your vehicle at a moment’s notice, or else going without a vehicle until you could save for a replacement it’s best to err on the side of caution and pay the extra premium for collision coverage,” compare advise.

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Collision Coverage – How Do I Know When to Drop Collision Insurance: Looking for a guide on how to figure out when to drop collision coverage for your car? 

This post is here to show you the basic things you need to know.

Okay….let’s get started with Collision Coverage – How Do I Know When to Drop Collision Insurance.

You’ve raised your deductible.

You’ve gotten dozens of insurance quotes online. And you still feel like you’re paying too much for car insurance.

Maybe it’s time for a drastic step: getting rid of collision insurance.

Before we proceed further, let’s take a brief look at what collision coverage is all about.

What is collision coverage?
Collision coverage is the part of your insurance policy that pays for damage to your own car. It comes in handy when:

You hit another driver. Their insurance company won’t pay for the damage, because it’s your fault.
Another driver hits you but won’t admit fault.

If you get into a legal battle, collision coverage can pay to fix your car while the matter’s being resolved.

You crash into a telephone pole (or a building, or a tree, or an inconveniently placed boulder.) You can’t sue a boulder, so you’re on the hook for the repair bill.

In order to have collision coverage, you typically must also have comprehensive coverage, which protects you from other covered mishaps that don’t involve collision.

These include things like fire, natural disasters, hitting a deer, being struck by a falling tree and having your car vandalized or stolen.

Deciding when to drop collision coverage
Collision and comprehensive are optional parts of your policy — as opposed to liability insurance, which is usually mandatory and covers damage to other people’s property and injury to other drivers.

If your car is brand new, however, your lender may require you to carry collision/comprehensive.

See: how to get free business insurance quotes online

The best way to decide when to drop collision coverage is to run the numbers: specifically, how much you’re spending on collision/comprehensive, and how that compares to your vehicle’s value.

Financial experts often say it’s smart to drop collision when you drive an old car, then put your car insurance savings in a fund earmarked for emergency repairs or buying a new car.

However, when you’re trying to decide when to drop collision coverage, the answer really comes down to your personal finances.

“If you’re not absolutely sure that you could deal with paying for repairs or completely replacing your vehicle at a moment’s notice, or else going without a vehicle until you could save for a replacement it’s best to err on the side of caution and pay the extra premium for collision coverage,” compare advise.

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