QuestionHi Richard,
My question is not about a claim, but I am looking for advise on dropping comprehensive and collision insurance, which is optional in my state now that my vehicle is paid off. The vehicle in question is a 2003 Mazda with over 90,000 miles. It still runs fine and is my only transportation back and forth to work, so if I were in an accident, I would need to replace it. But somebody told me that if I were in an accident and the car was totaled, I would only get the blue book value of the car, which can't be much. My insurance agent advises me not to drop the coverage, but that could be because he doesn't want to loose my premium.
Any advise you could give me would be appreciated.
Thank You,
Tracy
AnswerHi Tracy,
This is actually a question that only you can answer. The questions you need to ask yourself are as follows:
1) if the car were totalled tomorrow, do you have the money to replace it without effecting your lifestyle.
2) if the vehicle were damaged tomorrow and the repair cost was $2,000 could you pay for that with out issue.
3) is the premium cost for the comprehensive & collision coverage more than 25% of the value of the vehicle.
If you can answer yes to at least 2 of these questions, then you should likely drop the coverage. You just need to be aware that if anything happens to the vehicle and there is not another at-fault person to collect from that you are on your own for repairs or replacement of the vehicle.
I hope this helps
Richard Hixenbaugh
