Do I Need Liability Or Comprehensive Auto Insurance Coverage?

Reader’s Question:

My car is already 10 years old, is there a point when one should consider not having liability, or comprehensive and collision insurance policy in Wilmington, Delaware?

Michael

Wilmington, DE

Car insurance and the types of optional insurance put on a certain vehicle are personal choices one has to make depending on the individuals financial and overall situation. Most states require some type of liability insurance on a car, so typically there is not a point in time in which to take off the state mandated liability insurance, unless you have sold or gotten rid of the car.

In order to confirm if you think physical damage (PD) insurance, comprehensive and collision, are necessary for your car first determine the value of your car. You then can weigh the value of your vehicle against your PD premium, as well as the deductible amount you would pay if you needed to use these coverages. An older vehicle that has a lowered actual cash value (ACV) may not be worth the extra expense of comprehensive and collision coverage, so you do not want to pay more for insurance than the vehicle you are protecting is actually worth. If you decide you want to keep comprehensive and collision on your car, you may see if you can lower your premiums for these coverages by raising your deductible. You may check as well if there are any discounts available for you in Wilmington, DE. If you decided that your vehicle does not need physical damage coverages any longer, you still will need to keep the state’s mandated minimum liability insurance on the vehicle.