Should I eliminate my comprehensive and collision coverage?
I own a base model 2016 Nissan Altima. If I were to have an accident that deployed the airbags, I’m pretty sure the car would be considered totaled. I can manage a down payment and have the credit to back it up. According to Edmunds, it’s valued at $2,000. Additionally, do I need uninsured motor vehicle property damage coverage?
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Deciding whether to remove comprehensive and collision coverage depends on a few factors. Here are some points to consider:
Value of the Car: Since your 2016 Nissan Altima is valued at around $2,000, you should weigh the cost of comprehensive and collision coverage against this value. If the cost of these premiums exceeds the potential payout you’d receive in the event of a total loss, it may not be worth it.
Risk of Total Loss: If you’re right that an accident would likely total the car and you’re only getting a couple thousand dollars back, you might consider dropping these coverages. However, if you rely heavily on your car for daily activities, you might prefer to keep some form of protection.
Uninsured Motor Vehicle-Property Damage: This coverage can be beneficial, especially if you live in an area where uninsured motorist accidents are common. It protects you from costs incurred when an uninsured driver damages your vehicle. If your area has a high number of uninsured drivers, this coverage could save you a significant amount in the long run.
Financial Situation: Since you mentioned you can afford a down payment and have good credit, you may want to consider if you want to save money now by dropping coverage or if you want to keep it for peace of mind while you still own the vehicle.
Ultimately, it might make sense to evaluate the cost of your current coverage, how much of a financial hit you could take if your car were to be damaged, and whether uninsured motorist coverage feels necessary based on your local driving environment. A conversation with your insurance agent could also help clarify your options and any potential savings.