Today when the cost of everything seems to be going up reducing or eliminating unneeded auto insurance coverage is one of the few places where we can cut back.
Collision insurance is not mandated by law. This aspect of your auto insurance policy pays to repair or replace your car. It has nothing to do with repairing or replacing a car owned by another party. This is covered by the liability part of your policy.
If you financed or leased your car, you will probably not be able to eliminate the collision insurance on your car. However, you may be able to raise your deductible and thereby lower your premiums.
An insurance company will pay you the book value of your care if it is totaled. This amount is the amount that is at risk, not the amount you feel your car is worth.
If you are comfortable knowing that you could wind up buying another car with no help from your insurance company in the event that you total your car, dropping collision insurance may be a good idea.
