If the annual cost for collision and comprehensive insurance on your
car is more than 10% of what you'd get from your insurer, then it's
time to consider dropping them.
Say the car is worth $3,000 & your deductible is $500. Then your risk
(exposure) is $2,500. If your collision premium is $250 per year,
then the rule of thumb says to drop the collision coverage and bank
the $250 for the next car.
(see more at
http://articles.moneycentral.msn.com/Insurance/InsureYourCar/DumpTheInsuranceOnYourClunker.aspx
On May 2, 6:22 am, "Kevin G." <KevinGrave...@[EMAIL PROTECTED]
> wrote:
> Hello,
>
> I am asking for advice as to whether I should remove collision
> coverage on my 1998 Civic DX coupe that has 156,000 miles on it. I
> bought the car brand new 10 years ago.
>
> If I remove the coverage, it would save me approximately $20/month.
> Kelley Blue Book states that the trade-in value of the car would be
> anywhere from $2,000 - $3,000, depending on the car's condition. I
> would say that my Civic is in-between fair to good condition. It
> still runs good and I have kept up with it maintenance-wise.
>
> Thanks for your advice,
> Kevin
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