MONDAY, JANUARY 20, 2020
We all want to trim the yearly spending budget, especially before we’re too far into the new year. More often than not, insurance coverage is the first set of bills we review in order to cut costs. Our clients are contacting us after doing their new home inventory after Christmas, and during those calls many clients ask auto insurance questions, like when can I drop collision coverage? Since we get this question often in our office each January, it makes sense to answer it here.
When to drop collision coverage from your Auto Insurance
First, ALWAYS call your insurance agent before making any decisions on your insurance coverage. We’re happy to help you review all your current insurance policies, and answer all of your questions. Second, yes, we’re giving you a generalized answer here so it helps you formulate all your questions prior to giving our offices a call, but again, the beauty of having a Long Island-based insurance agent: personalized service!
With this said, let’s give a little insight into when you MIGHT want to give us a call to discuss dropping your collision coverage from your auto insurance policy.
What is collision coverage?
Perhaps we should review what collision insurance is. Basically, it helps pay to repair or replace your car IF it’s damaged during an accident. The accident can be with another car, or an object (tree, fence, fire hydrant, etc.) It is NOT the same as COMPREHENSIVE insurance.
If you don’t have collision, your car isn’t covered. If it’s damaged, you won’t be able to file an insurance claim to help cover the cost of the repairs, or replacement. It’s all going to be on you and your wallet to pay for everything.
Good rule of thumb
When you’re buying or leasing a car, more often than not, you’ll be required to purchase collision, as well as comprehensive, coverage. After a car loan is paid off, that’s a great time to call, or stop in at, your insurance agent’s office. It doesn’t mean it’s the exact right time to drop the collision coverage, however, we’ll be able to walk through the insurance policy and see what makes the most sense for you and your budget.
Value of your car vs. Cost of collision coverage
If your collision coverage costs 25 percent of the value of your car, based on a six month policy, it’s time to reach out and give us a call.
In all honesty, the best thing to do anytime you want to cut costs with your insurance coverages, is call our Commack, Long Island office and speak to our qualified insurance agents and customer service staff. We’re always happy to answer your questions, review your current policies and find the best possible way to cover your automobile for the best prices on the market.
Trust us and give us a call at 631.543.0500. We look forward to helping you find budget-friendly car insurance coverage.
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