People everywhere have wondered if they have too much insurance on their older car. They wonder what coverages can be lowered without changing effective coverage to poor coverage. There are two types of coverages that make up an auto policy. The first is liability coverage, which is used to cover injuries to other people in the event of an at-fault accident. The second is comprehensive coverage, which pays for damages to the policy holder’s car in the event of an accident or damage caused by natural perils.
Comprehensive coverage is something to think about. This coverage is what covers the auto in case of damage from a stationary peril. If the auto is older it is most likely suffering from damage brought on by age. When a car ages, most people will often not care what the car looks like because the value often decreases over time. However, there are some cars that are older that are still in pristine condition and are still worth high amounts of money. Value is the thing to consider.
A second coverage to consider is the collision coverage, which is what covers the auto in case it hits something. Value of the car is an important thing to consider here as well. If the car is only worth $200 then it might be worth not carrying this coverage.
Another thing to think about is how often damage occurs to the car. Damage brought on to a stationary car by collision perils are more likely to occur than collision while in motion. It is possible to only carry comprehensive coverage and not collision. So if you wanted one coverage and not the other, it is possible to drop the undesired coverage.