Is Collision Insurance Necessary on an Old Car?

Collision insurance is not required by law but this does not mean it is unnecessary. Most drivers will include collision and comprehensive coverage on their policy for more complete protection on and off the road. Collision insurance will pay for damage to your car or your property in the event of any type of accident on the road where you are found liable for. Even if you have an older car it is still a good idea to purchase collision insurance for full on road protection.

Insuring an Older Car

Many drivers will go without collision insurance as a way to save money on their annual premium and stick with the required vehicle insurance types. While liability coverage is required by law in most states, collision coverage is not and is usually part of a ‘full coverage’ policy that also includes comprehensive coverage. If you are driving a new car then choosing to insure under a basic liability policy without full coverage is a huge risk; however, if you are insuring an older vehicle, driving without collision insurance is acceptable. If you are trying to decide whether you should include collision insurance on your policy or not, you need to consider the age of your car, your individual driving needs as well as your willingness to take a risk on the road.

If you are spending a lot of time driving your older vehicle then there is a higher risk that you could be faced with an accident. The more you drive, the more coverage you should have. Consider your daily and weekly mileage when determining whether or not you need collision coverage for your older car.

If your car is over 10 years old and is damaged in an accident then it will probably cost more to repair or replace the auto than what the car is valued at. What this means is that your car will be ‘written off’ and collision insurance will not be necessary. If your car is not worth much more than the coverage premium anyway, then opting out of this coverage may work in your favor. However, if you are driving a newer or expensive vehicle, then you will benefit from spending the additional money on full coverage protection.

It is a good idea to take the time and find out what your car is worth. Experts suggest that if your car is valued at less than $4000, then it is not worth having collision coverage. Of course, this is entirely up to you. After all, you are the driver and you are the one taking the risk every time you get behind the wheel.

Comparing Collision Insurance

Determining your level of coverage should not be a rushed decision. Take the time to compare your options and play around with your limits, deductible and coverage choices. Whether you choose to include collision coverage on your policy or not, take the time to weigh your options and select a policy that works for your unique driving needs.

There are several different aspects of insurance that may be deemed ‘unnecessary’; for many people, income protection and life insurance are not essential but for many others, they are extremely important. It all depends on your situation, your finances and your individual opinion on insurance. If you prefer not to risk it and enjoy the added comfort of knowing your car is protected against anything, then purchasing collision insurance is most certainly necessary. Carrying this level of collision insurance coverage will ease your mind, regardless of the age or condition of your car. And that is what insurance is all about.

Compare Car Insurance Quotes