Is it worthwhile to maintain collision coverage on older cars?

0
Posted

Is it worthwhile to maintain collision coverage on older cars?

0

Collision coverage takes care of the cost of repairing your car if you’re in an accident, regardless of who’s at fault; comprehensive pays if your car is stolen or damaged by fire, flood, hail or wind. If your car isn’t worth much, why pay a premium for repairs on a vehicle you’ll probably replace if it’s badly damaged? Collision damage for an older car can cost more than the car is worth. If your car is worth a few thousand dollars it may not be cost effective to pay for this coverage. Tip: The rule of thumb — from the Consumer Federation of American group: Drop collision if your premium is equal to 10% or more of the value of your car. But remember that you generally can’t drop collision until your auto loan is paid off. Tip: Check the value of your old car in the “National Automobile Dealer’s Association Official Used Car Guide,” known as “The Blue Book.” Auto dealers, banks and libraries have copies.

Related Questions