When you first buy a car, you typically need more coverage than when your car is older and therefore not worth as much. Eventually, you will be able to drop your collision and comprehensive insurance altogether, while keeping your liability automobile insurance in place. This is one of the best ways to get the cheapest auto insurance in Dallas, but it’s important to understand when it’s the right time to make this change.
The Value of Your Car
One of the most important factors in determining whether you should drop your collision and comprehensive coverage is the value of your vehicle. When you make a claim against your insurance policy, they will only cover damages up to the value of the car. If costs exceed that amount, the car is considered totaled. At this point, it’s not worth the added cost of having collision coverage for your vehicle. Don’t forget to factor in the cost your deductible when determining whether you should drop some of your coverage.
The Cost of Coverage
Another important element to consider is the cost of the coverage. Liability automobile insurance is likely a larger percentage of your premium, but if you cancel your comprehensive and collision coverage, you can reduce the amount you pay each month. Once you know how much these aspects of your insurance cost, you can weigh that expense against how much benefit you would receive to determine if it’s worth the monthly fee. If you are paying more than you would receive in a year, it’s time to consider eliminating the coverage.
Your Risks
Finally, consider how many claims you have filed, along with your likelihood of filing a claim in the future. If you aren’t driving often or you don’t go far, your risks of being involved in an accident are considerably lower, which means you may be paying too much for your insurance coverage. However, if you seem to frequently rely on your insurance to pay for repairs, you may want to rethink dropping your coverage. Unfortunately, your driving history can’t provide a clear view of future incidents, but when combined with other factors, it can help you make an informed decision. Determining whether you should drop your collision and comprehensive insurance and switch solely to liability automobile insurance isn’t an easy process. There are several factors you need to consider, including the current and future value of your car, the cost of the coverage, and your level of risk. If the costs outweigh the benefits, you can feel confident in dropping some of your coverage to save money, especially if you can set that money aside to pay for some of the maintenance and repairs your vehicle needs. If you’re looking for the cheapest auto insurance in Dallas, contact us. We can help you find the coverage you need at the most affordable rate.