Dropping collision or comprehensive coverage from your auto insurance policy can significantly reduce your premiums. Your decision should be based on the value of your vehicle and your tolerance for risk.
You’re legally required to carry auto liability insurance in every state except New Hampshire. Auto lenders typically require comprehensive and collision coverage on the cars they finance. If your vehicle is paid for, the choice normally is up to you.
Determine your car’s value
Here’s how to get past insurance sales pitches to find out what’s right for you. First, find out your car’s current value, which is what your vehicle is worth in the eyes of your insurance company. You can find a ballpark value online at Kelley Blue Book or NADAguides.com.