Tuesday, November 1, 2011
Tip 6: Insurance Advice for Older Cars
If you drive an older car, consider dropping collision and comprehensive coverage (don't drop liability coverage). Collision coverage is required if you have a car loan, but for older cars that you own, weigh the car's book value (what the insurance company would pay you if the car was totaled) against your collision premiums. If your car is over five years old or is worth less than $1000, keeping collision and comprehensive coverage may not be worth what you're paying in insurance premiums.
Potential Money Savings: $100-300/yr.