Everyone wants to save money on their insurance bill, right? A good way to do that is to consider removing comprehensive & collision coverage on your older vehicle.

I can hear you asking, “So, how much can I save?” Dropping these two coverages could potentially cut the cost to insure that older vehicle in half, saving you $300 or more per year!

Here’s a good rule of thumb:

If the yearly cost of comprehensive and collision coverage is more than 10% of your vehicles value, then it’s probably a good idea to look at dropping these two coverages and put the savings in the bank toward your next vehicle.

Let’s work through an example:

1998 Chevy Lumina………approximate value $2,500

Comprehensive $100 vs. -None-

Broad Collision $500 vs. -None-

Cost $402/6 months vs. $218/6 months

That is a difference of $368 per year!

The savings are even more dramatic for a teenage driver or an individual with a lot of speeding tickets/accidents.

Let’s look back at our example again in light of our “rule of thumb”.

10% x $2,500 (vehicle value) = $250

Yearly cost of comp & collision = $368

Seems like this vehicle might be a good candidate for removing these coverages, right?

IMPORTANT!! Here are 2 reasons NOT to drop these coverages even if the vehicle does follow our rule of thumb:

1. You have a loan on the vehicle. Banks require that you carry comprehensive & collision coverage…they want their money back!

2. If your vehicle is totaled/stolen tomorrow and you get no money from the insurance company (that’s what no comprehensive or collision coverage means) you would have no way of getting a new car.

Remember, be a smart consumer but don’t try to be your “own agent.” Protection for you and your family requires constant vigilance and a partnership between you and a professional agent.

For more information on how to save money AND get the best protection for yourself and the people you care most about call us at 734-429-2707 or visit us at http://www.KidmanAgency.com

We proudly represent MEEMIC Insurance Company and offer Educational Employees Exclusive Rates on Auto, Home, Boat, & Umbrella Insurance. We serve Ann Arbor, Milan, Saline, Ypsilanti, Clinton, Dexter, Manchester, Chelsea, and all of Washtenaw county in Michigan.

Please talk with your insurance agent to find out what’s best for you.

This contains brief descriptions of coverage and is not intended to alter any coverage afforded in the policy. Only your policy indicates the coverage afforded to you in the case of a loss. Other terms, conditions, limitations and exclusions may apply. All coverage’s described are subject to availability and qualifications. All discounts are subject to certain restrictions. Premiums shown are for illustration purposes only.

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