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Get rid of collision coverage on older or more worn-out cars

Submitted by a LOZO expert
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Whether your car is older, has very high mileage, or is more worn & outdated, the bottom line is that if your car doesn’t have a high re-sale value, comprehensive collision coverage can be a waste of money. If the annual insurance premium is more than 10% of the current value of the vehicle, consider removing this coverage option. Since claims occur at an average of once every 11 years, you are likely to pay more for comprehensive coverage in all these years than you might see back on any claim on an older, less valuable car.

The nice part about making changes like this to your insurance policy is that the savings can go into effect right away, you don't have to wait until your next renewal. If you've prepaid your premium that means the insurance company now owes YOU money for the portion of the coverage you are dropping. If you ask, they should send you a check on the spot to reimburse you. Of course all this depends on your policy and carrier, so be sure to check with them.
A LOZO expert posted this tip.

User Comments

posted by HJ21 (Contributor | 140 Points) on 05-12-2010 11:09 AM
How true it is!
Found out the hard way just how true this is: had a bad accident a number of years ago with our oldest car (about 11 years old) and insurance co offered us virtually NOTHING! I admit we got pissed because we'd been paying insurance on it but they told us that the car no longer had any value. Too bad they hadn't told us that while they were taking the premiums.
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