How Do You Know When To Drop Collision Insurance?
It’s a good idea to re-evaluate your car insurance needs every six months to a year. Your needs change. Policies change, and as time goes on, your rates will go down if you have a good driving record. Cutting collision insurance from your car insurance policy can undoubtedly save you money. Here are the steps to determine when you should drop your collision insurance. Consider dropping collision insurance on cars that are five years or older. Insurance companies determine car values that closely match the Kelley Blue Book values. As you know, these begin to fall as soon as the car leaves the showroom. Drop collision insurance if the annual fee for the coverage is 10 percent or more of the car’s value. For example you can probably drop the coverage if your car is worth $5,000 and your annual collision coverage costs $500. Keep collision coverage if you still have an outstanding loan on a car. Most lenders insist that you carry this coverage for the life of the loan. Consider dropping co
