Many drivers hang on to full coverage for peace of mind—but is it really worth keeping collision coverage on an aging car?
If your vehicle is older and has a lower market value, collision insurance might be costing you more than it’s worth. This coverage pays for repairs to your car in an accident, but if the payout wouldn’t exceed your deductible and premiums, it may be time to reassess.
➡️ I ran the numbers on my 12-year-old sedan and realized I was spending hundreds per year for coverage that wouldn’t do much in a total loss scenario. After comparing plans through a few Pittsburgh-based providers like this one, I found better options that matched my current needs.
Things to consider before dropping collision:
Is your deductible higher than your car’s value?
Could you afford to replace your vehicle out-of-pocket?
Is the premium savings significant?
Do you have an emergency fund set aside?
🧠 If the value of your car is close to or less than the annual cost of collision insurance, dropping it could make financial sense. Instead, you can redirect those savings into a vehicle replacement fund.
For drivers looking to optimize coverage without overpaying, it’s smart to reassess your policy yearly and explore more affordable alternatives that still give you peace of mind.
