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	<title>New answer on: When To Drop Collision On Car Insurance?</title>

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		<title>By: David Pipes</title>

		<link>https://insurancelibrary.com/auto-insurance/when-to-drop-collision-on-car-insurance</link>

		<dc:creator>David Pipes</dc:creator>

		<pubDate>Tue, 26 Aug 2014 19:39:44 +0000</pubDate>

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		<description><![CDATA[I rarely recommend that any driver drop collision coverage.  Regardless of the premium there will be a sum recovered if the car is damaged in a collision and that might be extremely important to the customer.  I do advise them that as the car loses value the amount they will recover drops as well and that for some older cars a minor collision would result in the car being declared a “total.” ]]></description>

		

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		<title>By: David Mrozek</title>

		<link>https://insurancelibrary.com/auto-insurance/when-to-drop-collision-on-car-insurance</link>

		<dc:creator>David Mrozek</dc:creator>

		<pubDate>Fri, 20 Dec 2013 17:10:29 +0000</pubDate>

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		<description><![CDATA[I love this question!  I have clients right now who pay more for collision coverage than they could ever collect on a total loss.  It make no sense at all, it&#039;s just what they&#039;ve always done.  

There&#039;s a loose formula that I use in advising my clients about insuring an older vehicle.  Look on KBB.com or Edmunds and get a rough idea of what your car is worth.  Don&#039;t use the &quot;clean retail&quot;.  That&#039;s completely unrealistic.  Use the average trade or rough.  It&#039;ll be closer to the truth.  Also check autotrader to get a range of what the cars are being listed for.  Once you have a pretty good idea of what your car is worth, compare it to the cost of your physical damage coverage.  If the cost of the coverage is more than 10% of the value, you might consider dropping the coverage.  That means that, in about 2-3 years, you&#039;d spend more than the value of the car.  If you do have an accident, you get to make the decision on whether to repair the car or replace it.  You&#039;ve already saved enough to do either(if you haven&#039;t spent your savings).

Bottom line, be aware of what your vehicles are worth and act accordingly.  Spending money on coverage that wouldn&#039;t pay much doesn&#039;t make a whole lot of sense.  That&#039;s not your agent&#039;s place to decide for you, but we deal with it a lot and can make a suggestion.  Find a good agent you can trust and go through the process.  You&#039;ll save money in the long run.]]></description>

		

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