How to determine when age and milage of auto no longer warrent collision coverage.

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jun 24, 2010

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Insurance Question from Harrisburg, PA

Asked on 06/24/2010

How to determine when age and milage of auto no longer warrent collision coverage. NULL

Answer given on June 29, 2010

Determining when to drop collision coverage on a car is not always easy.   You should talk to your agent or go online to see what the value of the car is.  Then determine what you are paying to continue the collision coverage and see if it is worth keeping the coverage.  Remember, collision coverage applies if an accident is your fault.

Sometimes a car is more valuable to the owner because they can’t afford a new car.  Continuing collision coverage makes them feel they have protection for the car.  However, an accident may cause damages that exceed the value of the car, and the insurance company will only pay that value.  Also, if the car is considered a total loss, the insurance company will take the car as salvage, unless you can buy the car back.  You then have a car with unrepaired damage that you will need to fix.  You may be able to repair the car for less than the insurance company estimate, but the value of the car is further reduced.

In some states you can drop collision coverage but still have the car covered for collision damage, up to a certain value,if cause by an uninsured driver.  Talk to your insurance agent about this coverage.

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