When Dropping Your Collision Coverage Makes Sense
When you buy a brand new car, investing in collision coverage should be an easy decision, since it will protect your new car from damage that is done outside of an accident. However, as your car ages and you put more miles on it, collision coverage may not make as much sense. When deciding when it is time to drop your collision coverage, keep these simple steps in mind.
- Take a look at your auto insurance policy, and figure out just how much you are paying for collision coverage compared to the protection that it is actually providing you.
- Find a recent copy of the Kelly Blue Book to help determine what the fair market value of your car currently is. If you do not have a hard copy, the information can easily be found online. While you can also use a recent car magazine to help determine the value, keep in mind that your car insurance provider will use a more reliable source, such as the Kelly Blue Book.
- Subtract your current deductible from the value of your car. If your collision premiums are 10 percent or more of the risk that you would take if you drop collision coverage, it makes the most sense to simply get rid of collision coverage. The money that you were paying towards your collision coverage can start going into a new car fund, or a vacation fund for the whole family.
- Check your bank account, and decide if you would have the finances needed to buy a new car if your current car was totaled. If you do not have enough in your bank, you may want to consider keeping your collision coverage.
For all of your car insurance coverage needs to ensure that you have the protection that you deserve, contact Gee Schussler Insurance Agency in Orland Park, Illinois.
