Q. Should I ever consider dropping collision coverage from my auto insurance?
A. Collision coverage can be a valuable component of an auto insurance policy. Unlike liability coverage, which helps cover damage to other people and property when you’re at fault in a crash, collision coverage helps pay to have your car repaired if it strikes another vehicle or object.
If you’re thinking about dropping collision coverage, consider the value of your car versus the cost of the coverage. A car’s value depreciates as it ages and accumulates miles, so there’s typically a point where the premium cost of collision coverage and its deductible can approach or exceed the cash value of a vehicle.
Many drivers weigh this value proposition regularly when their vehicles are 10 or more years old.
– Jodi DeSantis, director of insurance sales, AAA Northeast
To speak to a AAA insurance agent or get a quote, visit AAA.com/Insurance.