Should You Have Collision Insurance Coverage on an Old Car?

Getting collision insurance coverage on an old car is not always the best financial decision. It could potentially be to your advantage in some situations, but many people do not get this coverage because it is not cost effective. Here are a few things to consider about whether you should have collision insurance coverage on your old car.

Low Car Value

Most of the time when you own an old car, the value of the car is not very high. Cars depreciate so quickly that by the time it is more than 10 years old, there is a good chance that its value is negligible. If you totaled the car, you would not get very much of a settlement from the insurance company. If you did not have a wreck for even a few months, the savings on your insurance costs would most likely add up to the amount of money that you would receive in a settlement.

Liability Only

If you want to save some money, you should most likely get only liability coverage on your old car. This way, you will have a very affordable insurance premium and you will not be at risk of being liable if you get in an accident.

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