Can I do without collision and/or comprehensive insurance for my car?
You can certainly economize on collision and comprehensive insurance, even if you decide you can’t do without them entirely. Collision insurance merely pays for repairs to your car in any kind of accident. Because benefits go down in accordance with a car’s age you probably won’t get enough money to matter if your car is more than 3 or 4 years old. Therefore, you can almost surely do without collision insurance on an old car. Looking at it from another angle, even a series of small repairs could cost you less than the amount of the insurance premium. Besides, insurance companies often penalize you for making small claims—even though you have every right to—by canceling your policy. This legal, if immoral, pressure on you to pay for your own repairs makes collision insurance practically useless for small claims.
