Should I Buy Collision Insurance on an Older Car?
If you own your car outright, collision insurance is usually optional. Lenders normally require that you have collision insurance.
The answer to this depends on your propensity for risk. If you are able to pay for any damages to your car, your insurance payment will be much lower by foregoing collision insurance. I recently saved $400 over a six month period by dropping my collision insurance. Of course, if I'm in an accident, all expenses must be paid out of pocket.
Ask yourself this: If my car gets totalled without insurance, can I afford a down payment on a new car? If I pay for the insurance and total my car will I get a payout from the insurance company that makes it all worthwhile?
The answer to this depends on your propensity for risk. If you are able to pay for any damages to your car, your insurance payment will be much lower by foregoing collision insurance. I recently saved $400 over a six month period by dropping my collision insurance. Of course, if I'm in an accident, all expenses must be paid out of pocket.
Ask yourself this: If my car gets totalled without insurance, can I afford a down payment on a new car? If I pay for the insurance and total my car will I get a payout from the insurance company that makes it all worthwhile?