Dec 8, 2014
Dropping Collision Coverage Can Help You Save Money
When looking for the right auto insurance coverage for your car, there are many different coverage options to choose from. If you have a new car, investing in collision coverage will help to ensure that you are not financially devastated in case your car is damaged or ruined from an incident other than one with another vehicle. If your car is not new, you may be able to save money by dropping your collision coverage. Keep these steps in mind to find out if you can drop your collision coverage.
- Look at your current auto insurance policy to see what your current coverage options are. Look closely at the cost of your collision coverage and compare it against the value that it is currently providing.
- Get a recent copy of the Edmund’s car value guide or Kelly blue book and determine the current value of your vehicle. You can also find the value of your car on their websites. Ads in car magazines will also give you an idea of what your car is worth, but your insurance company will use a more reliable source when figuring out the value.
- Subtract your current deductible from the value of your car. If dropping your collision coverage comes to a risk of $3,500, and your total annual collision premiums are $350, 10 percent, you may be better off dropping your coverage. You can put the $350 into a separate fund to buy a new car or for a nice vacation. If the collision coverage portion of your overall auto insurance premium costs more than the value of your vehicle, it may not make sense to keep the coverage.
For all of your auto
insurance needs and to ensure that you are protected in any unfortunate situation on the road, contact
Gateway Professional Insurance Services in Vacaville, California. We will work with you to ensure that you have the right amount of protection for your specific situation, all at the right price.