Should I drop my comprehensive and collision coverage? I have a base 2016 Nissan Altima, and if I were to get into an accident that deploys the airbags, I’m pretty sure it would be deemed a total loss. I can make a down payment and have the credit to back it up. According to Edmunds, the car is valued at $2,000. Additionally, do I need uninsured motor vehicle property damage coverage?
Should I get rid comprehensive and collision?
Deciding whether to keep or drop comprehensive and collision coverage ultimately depends on your personal circumstances and risk tolerance. Since your 2016 Nissan Altima is valued at around $2,000, you need to consider the cost of your insurance premiums versus what you would receive if the car were totaled or damaged.
Here are some points to consider:
Cost of Coverage vs. Car Value: If the premiums for comprehensive and collision coverage are relatively high compared to the value of the car, it might make more sense to drop those coverages. If you were to have a significant accident, the payout would likely only be a few thousand dollars at most.
Your Financial Situation: You mentioned that you can afford a down payment and have good credit. If you would be able to purchase a new car relatively easily, you might be okay dropping those coverages. However, consider whether you would be financially comfortable covering the costs of repairs or replacing the vehicle out of pocket in case of an accident.
Uninsured Motorist Coverage: Uninsured motorist property damage coverage can be important, especially if you live in an area where uninsured drivers are common. It protects you if another driver causes damage to your vehicle and does not have insurance. Given the potential risk, it’s often advisable to keep this coverage.
Ultimately, it may be worth talking to your insurance agent to get a clearer picture of your options and potential costs. They can provide personalized recommendations based on your specific situation and local regulations.