Is it time for me to drop the collision coverage from my auto policy now that I'm working fewer hours?

My hours got cut at work and I am trying to find ways to save money. I've paid my car off, but it still has a value of around $9,000. Should I remove the collision coverage to save money?

Answer
“Since your car still has such an excellent value, you would only want to remove collision coverage as a last resort. Look into these other options first:
  • Are you eligible for any discounts you are not yet getting?
  • Since you are working less, have you lowered the annual mileage on your current policy?
  • Does your policy carry extra coverages that you can remove, like towing or rental reimbursement?
  • Can you raise the deductible on your policy any higher to get a lower premium?
If the policy is still too expensive for you after pursuing the above options, it is time to look for cheap car insurance elsewhere.
If your rate is still out of reach after all this, then remove the collision coverage. But it is better to have less insurance than no insurance. Once your situation improves, add the coverage back on as soon as possible.
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Shannon Martin
Answered on May 12, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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