Auto Insurance Claims: Auto insurance, To insure or not to insure

Question
Hello Justin,I live in Arizona, and I am currently switching auto insurance companies and transferring my full-coverage policy on my 2001 chevy Prism with 110,000 miles on it. The policy premium is $660 annually. The value of my Prizm is $3,300 per Kelly Blue Book. Of course the Kelly Blue Book is not the system used in rating car values for the insurance companies, so I am wondering if I am making a mistake by keeping full coverage on my Prizm, or just drop it and get liability coverage instead? I just need an outside perspective on this. Thank you for any advice that you can give. Sincerely, Jared C.

Answer
Jared,

   You might think about uninsured motorist coverage instead of collision coverage.  The difference in price is usually quite substantial.  With UM coverage, so long as you don't cause your own damages, if another party that is uninsured damages your vehicle, then you can get it covered through your UM.  Of course if the person has insurance, then so long as they were at fault, then their liability insurance ought to pay.  

   I usually make the analogy of a parachute.  It's useless if you don't have it when you need it.  It's sort of a personal choice.  Which do you need more. . .  the extra money each month / year or the security that you won't have to replace a $3500 (appx) vehicle?

   I hope this helps.