Comprehensive and Collision
As independent agents we frequently get asked when the best time is to remove comprehensive and collision coverage from your insurance policy. You may be surprised to learn that it is not when you’ve paid off your loan. Comprehensive and collision are designed to protect the value of your vehicle in the event it gets damaged. The time to consider removing comprehensive and collision from your policy is not when the loan is paid off, but when you can afford to replace the vehicle out of pocket. For example: If your vehicle is still worth $15,000 when your loan is paid off its worth paying the extra premium for comprehensive and collision to protect that $15,000. If your car is only worth $2000 however, then you may benefit from saving the premium and assuming the risk of replacing your car.