There are several considerations to help you decide the answer.
Is collision coverage on an older vehicle necessary? This aspect affects the premium of your auto policy more than any other coverage. You need to ask yourself: “If you end up getting involved in a collision that ends up in a total loss for you vehicle, will you be able to afford to replace it with something of comparable worth?”
Before looking into removing collision coverage off you policy, discuss with your agent other forms of collision coverage options, such as the following:
1. Broad Form Collision : the most expensive form of collision coverage, but it allows your deductible to be waived in the event of a NOT at-fault accident.
2. Standard Collision : the second least expensive option. You pay the deductible no matter who is at fault. All of these have higher and lower deductibles.
3. Limited Collision : the least expensive collision coverage option. It generally has a zero dollar deductible, but there’s a catch. If you are not at fault in an accident, your vehicle damages are covered with no deductible. However, if you are deemed at fault, you have absolutely no vehicle damage coverage. I like to call this the ’50/50 gamble’
HOW TO DECIDE
1. Use Kelly Blue Book to discover the value of your automobile.
2. Analyze your personal finances to see if you can afford to replace it.
3. Call your insurance agent and discuss other collision options to help lower your auto premium.