Monday, March 6, 2017

Collision Insurance

Once your car starts to get long in the tooth, you might consider reviewing your collision insurance to see if it's still worth keeping, especially if you carry a larger deductible on your policy (which can be a wise cost-saver). Assuming you have a good company like Amica, if your car is totaled, you will receive something between the trade-in value and the retail value adjusted for the condition of your car minus your deductible. Now, here's the one thing to keep in mind: Once applying that algorithm, and if makes sense then to drop collision coverage, pause, take a breath, and, if you have two or more cars insured, see if you are getting a multi-car discount on the other collision coverage of the other car(s). If so, check to see if you would lose that discount, in which event, the total savings you thought you would be getting will be about halved.

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