How and When to Drop Collision Coverage of Your Car Insurance
Collision coverage will cover the client in times of accident, whether it collides with another car or another object like the hydrant or utility pole.
Many customers keep collision coverage on their car insurance policies, especially with their new cars.
However, they can opt to drop this coverage, and this article will help you decide whether to keep it or drop it on your policy.
The first consideration for you to decide whether to drop the collision coverage is to know the actual cash value of your vehicle (ACV).
You can find several sources that will provide the actual cash value estimates through online or through publications.
You should contact your insurance company about this kind of car insurance coverage to see how it determines the ACV in your area.
However, keep in mind the condition of your vehicle and be realistic about the ACV estimate.
If you know your ACV estimate, you will be sure that you are getting the right amount of your car when you will drop the collision coverage.
The second consideration to remember is the price you are paying fro collision coverage.
You might pay for a collision premium to insure your car against the damage that may never happen.
You may pay a $500 per year for your collision premium if your vehicle worth is $2,500.
But you will only receive a total loss settlement which is $2,000 only.
Having cheap car insurance can be attainable for you if take into consideration knowing your collision deductible.
This is important because if you will use your collision coverage, you will be responsible for paying the amount you select for your collision deductible.
For example, if you select for $5,000 deductible then you will pay this amount in case of collision.
Many customers keep collision coverage on their car insurance policies, especially with their new cars.
However, they can opt to drop this coverage, and this article will help you decide whether to keep it or drop it on your policy.
The first consideration for you to decide whether to drop the collision coverage is to know the actual cash value of your vehicle (ACV).
You can find several sources that will provide the actual cash value estimates through online or through publications.
You should contact your insurance company about this kind of car insurance coverage to see how it determines the ACV in your area.
However, keep in mind the condition of your vehicle and be realistic about the ACV estimate.
If you know your ACV estimate, you will be sure that you are getting the right amount of your car when you will drop the collision coverage.
The second consideration to remember is the price you are paying fro collision coverage.
You might pay for a collision premium to insure your car against the damage that may never happen.
You may pay a $500 per year for your collision premium if your vehicle worth is $2,500.
But you will only receive a total loss settlement which is $2,000 only.
Having cheap car insurance can be attainable for you if take into consideration knowing your collision deductible.
This is important because if you will use your collision coverage, you will be responsible for paying the amount you select for your collision deductible.
For example, if you select for $5,000 deductible then you will pay this amount in case of collision.