When Should You Drop Collision Insurance on Your Car?

Road accidents or collisions can happen at any time. In such situations, having collision insurance coverage can help cover the damages and repairs. However, some people may think about whether it is worth paying for collision auto insurance. Let’s find out.

What Is Collision Insurance?

It covers car damages caused due to collision with another vehicle or object, including rollovers. Irrespective of who is at fault for the incident, it will pay for the damages caused to your vehicle. It includes damage and repairs caused due to man-made mistakes, such as hitting a telephone pole or tree on the road, colliding with a building, or hitting a pothole or curb.

Comprehensive auto insurance coverage is helpful in the event of natural disasters such as landslide, flood, or cyclone.

When Should You Drop Your Collision Insurance?

Here are a few instances you can consider dropping your collision insurance.

  • If your premium exceeds 10% of your car’s value, you can drop your collision coverage.
  • If your car becomes older and you want to buy a new one, you can drop your collision coverage and use that money to buy a new car.
  • If the market value for your vehicle is lower than the deductible on your collision insurance, it will be better to drop it. For example, if your totaled car’s worth is $850 and your deductible is $1000, you would end up paying for the damages.

Just because collision coverage is not legally mandated does not mean you do not need this. It is important to cover the damages resulting from accidents and collisions.

Based on your needs and budget, you can decide whether to have collision coverage. For assistance with all your auto insurance needs and questions, contact the experts at Miller Carlisle Insurance Services in Carlisle, PA. We help you get the right coverage you need.