I bet you are thinking, right when I take collision coverage off my car is right when I will have an accident! Well, It is always a toss up of when to drop collision coverage, as it is one of the most expensive (electable) coverages on the auto policy. You have probably sat down and started getting in to complicated math formulas to figure out if paying for the collision on the policy is worth the amount you will get if the car is totaled.

Well, fret no more! Hopefully this will set you at ease for deciding on when to pick up and or drop collision coverage.

You should first figure out the value of your car in itʼs current state. You can do so by going to Kelly Blue Book. KBB is accepted as a trusted resource in the car industryʼs valuation of vehicles. This will give you and accurate value to work with. Here are some points to consider in your decision:

1. If your collision coverage is more expensive than the value of your car, DROP the coverage. The chances are, even a small accident will total your vehicle because it would be more to repair the car then it is worth.
2. Is the value of your car, minus the policy deductible, equal to the premium that you are paying for it? Young drivers collision premium can be extremely expensive, ask yourself if the premium is equal to the value of the car minus your deductible.
3. You can also elect to drop or pick up collision coverage at your leisure. I advise my clients that are on the fence about the coverage to keep in mind they live in Upstate NY. Upstate NY winters can get brutal which is cause for many accidents throughout the winter months. Keep the collision on the vehicle during the winter and then drop it in the summer to save some money.

A couple of things to note. If you are leasing a car, you are required to carry collision coverage. If there is no lease on it, it is up to you to decide. When vehicles become 8-10 years old is when you should start thinking about letting the coverage go!

If you are still lost in trying to figure out the value of the vehicle and if dropping the coverage will work financially for you, just ask an insurance agent