Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers
Dropping collision on your car depends on how much you wish to self insure. As long as you do not have a loan you can drop collision anytime. However one of the more common times to consider dropping collision is if your vehicle is worth $3500.00 or less. The reason for this thinking is this is the amount uninsured motorist property damage would pick up in the event you are hit by someone with no insurance. Of course your still on your own if you cause the accident or if your involved in a hit and run type situation where you don't know who caused the accident. You may want to look at what you actually are paying for collision coverage and what the vehicle is worth in a total loss since this is all your going to get.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Insurance companies rarely accept a full risk. When you buy comprehensive and collision insurance the company requires that you pay a part of the recovery when there is a claim. As the car depreciates the recovery is reduced. The sum of the deductible, the premium for the coverage, and the lessened recovery reach a point where maintaining the coverage no longer makes sense. This happens with many cars around their 10th year.
Owner, Best Health And Car Insurance Rates - Instant Online Quotes, US
Removing collision coverage from your vehicle will reduce your premium...often substantially. So when is the best time to take it off?
There is no universal answer since each car on the road has different mileage and is used in different ways.
When your vehicle is more than 10 years old and/or the value has sharply declined, it's time to consult a broker that can quickly review the cost of maintaining coverage vs. the cost of removing it.
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There is no universal answer since each car on the road has different mileage and is used in different ways.
When your vehicle is more than 10 years old and/or the value has sharply declined, it's time to consult a broker that can quickly review the cost of maintaining coverage vs. the cost of removing it.