Do I need collision coverage on my older vehicle?

Should you carry collision coverage on your older vehicle?

So that’s depends on your situation and your preferences. When you have an older vehicle and it is paid for, no one is requiring you to carry comp and collision coverage, correct? Right!

It is not required by law. Only liability is required by law in the state of Ohio. So now you’re left with this decision, and these are the things that you’re going to want to think about; the insurance company is not going to pay you, and this is all insurance companies, they are not going to pay you any more than that vehicle is worth. It doesn’t matter what you think it’s worth. They’re not going to pay you anymore for that vehicle, if you total it or crash it, than what they believe it is worth based on factors that they go by.

The other thing you’re going to need to think about is, ok, based on how much my vehicle is worth is it going to cost me more to pay for that collision coverage on that policy for the year or is it going to cost me more to replace the vehicle myself?

So if the vehicle is 6,7,8,9 hundred or $1000 to replace or that’s all it’s worth and you crash it, that’s what you’re going to get back. If you’ve paid over $1000 to add collision to your existing policy, then it probably isn’t worth it. But there’s another thing to think about, if your vehicle is totaled, are you able, how are you going to get around? Are you going to get any money at all back so that you could put down a deposit or to pay for another vehicle whether it’s new or old?

If you crash your vehicle, can you afford to pay to repair it so that you have transportation back and forth to work or wherever you need to go?

These are all things that you have to figure in. Quick story, years ago I had a vehicle that was paid off, my renewal was up, and I was considering removing my comp and collision coverage to save money. I decided not to do so. Two weeks later I totaled my vehicle and the insurance company I was with at the time cut me a big fat check. I was able to take that big fat check and put a deposit down on a brand-new vehicle, so it worked out for me.

However, it doesn’t always work out that way. So, what I would do is speak to my insurance agent about what the best course of action is for you based on your individual circumstances and then go from there.