Evaluating the Risks and Benefits of Dropping Collision and Comprehensive Coverage for Older Vehicles
Are you considering canceling collision and comprehensive insurance policies on your aging vehicles? If so, you’re not alone—many vehicle owners weigh the costs versus the benefits as their cars age.
Currently, I own two cars that are around 15 years old—a Subaru Outback and a Mazda 3—that are primarily driven by my daughters. Lately, I’ve been contemplating whether maintaining comprehensive and collision coverage is necessary for these older models. My reasoning is that, in the event of an accident or damage, the insurance payout might not justify the ongoing premiums.
This raises an important question: am I overlooking any potential pitfalls? Would dropping these coverages leave me vulnerable to significant out-of-pocket expenses in case of a mishap? Additionally, are there specific considerations for vehicle owners in California that I should be aware of?
If you’re in a similar situation or have expertise in vehicle insurance, I would appreciate your insights. Understanding the balance between premium costs and potential risks is crucial to making an informed decision about insurance coverage for older vehicles.
