People owning older cars frequently ask: “Might it be time to drop my collision coverage on my older car?” or “Is collision coverage on an older car even worth it?” Let’s start off with the definition of “collision coverage”. Collision coverage typically pays for repairs to your car for any accident for which you are at fault. This coverage will also usually pay the blue book value of the car minus the deductible, should that be necessary.  The insurance company does not buy you a new car; in most cases, it offers you the car’s worth.  For example: if it is an old car (worth just $5000, let’s say), that is how much the insurance company will usually pay out, minus the deductible (You should know that the average collision deductible is either $500 or $1000).

So if you’re not sure if you should drop your collision coverage on your older car, it might help you to check Kelly Blue book (kbb.com) or nadaguides.com and determine the book value of your car.  This will allow you to see how much the car is worth.  Then look at how much you are paying for collision each year.  Some folks find that they pay more in collision costs than what their car is worth! 

It is ALWAYS the BEST choice to talk to your agent for advice on the best coverage for your auto policy! They are the experts and that’s what they’re there for. Talk to your agent about any questions you have regarding a change in your coverage before you make such an important decision.