Should I Drop Collision and Comprehensive Coverage on My Older Vehicles? What Are the Potential Risks?
If you own older vehicles, you might be contemplating whether to eliminate certain insurance coverages, such as collision and comprehensive, to save costs. This is a common consideration among car owners looking to reduce their insurance premiums, especially when the vehicles have accumulated significant age and their market value has declined.
Currently, I have two cars—both around 15 years old—serving as my daughters’ daily drivers. The models are a Subaru Outback and a Mazda 3. Given their age and condition, I am considering dropping comprehensive and collision coverage altogether. My reasoning is that, in case of an accident or damage, the insurance payout might not justify keeping the premiums up, especially if the repair costs exceed their current value.
However, I am aware that there could be potential downsides or overlooked factors in making this decision. For instance, what happens if the car is involved in a major accident or suffers theft? Would my insurance still provide a payout, or would I be left covering all repair expenses myself? Additionally, are there legal or regional considerations specific to California that I should be aware of before making this change?
I’d appreciate insights from experienced vehicle owners and insurance experts. Is dropping collision and comprehensive coverage on older vehicles a financially sound move, or are there risks I should carefully evaluate? Any advice or considerations I might have missed would be greatly appreciated.
Thank you in advance for your guidance!
