When Should I Drop the Comprehensive & Collision Coverage On My Old Vehicles?

Posted: 11/18/2009

If you currently have an outstanding loan on your vehicle or vehicles, then most lenders will require that you have comprehensive and collision coverage. The decision could be based upon your financial reserves and the actual value of the vehicle, if you or your business owns the vehicle outright. It is important to keep in mind that there are many factors to consider before you make your final decision on whether to drop the coverage. You may want to ask yourself a few of these key questions.

Could you buy another vehicle of this type?
Do you currently have the liquid funds needed to replace the vehicle if destroyed or stolen?
Is the value of the vehicle close to the premium you paid for comprehensive and collision coverage?

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