When you want the right insurance for an older vehicle sometimes less is more. Your trusted insurance advisor may also endorse dropping some coverage in certain circumstances. Two words of caution apply.
- Do not be too hasty in making these changes, and
- Keep your liability coverage at or higher than the minimum your state mandates.
Maintaining strong liability coverage, which protects you against claims for bodily injury and property damage, is important, regardless of vehicle value. Your older vehicle could inflict just as much damage on another a new auto right off the showroom floor.
Collision and Comprehensive Insurance Are Different
If you’re one of the many people that confuse these coverages, ask your insurance advisor to explain the difference. Here is the simple explanation. Collision will pay to repair your vehicle after an accident. Comprehensive coverage pays for damages caused by something other than moving accidents, including fire, theft, vandalism and/or collisions with animals, wild or domestic.
Announcing a Coverage Reduction
Your agent or carrier may announce a removal of collision coverage when the value of your vehicle drops below a certain level. For example, the Insurance Information Network of California states that when your vehicle is valued at $1,000 (or less), collision–and possibly comprehensive–coverage is not worth keeping it. If deactivated, you can always call your agent to reactivate coverage if you so desire.
If you live in Illinois and want more valuable information, contact Insurance and Mortgage Services in Batavia. Insurance and Mortgage Services professionals can explain these coverages in understandable terms. Their two decade commitment to superior client service is matched with their knowledge and experience to give you the best advice for proper protection.