Reader’s Question:

I have an old car here in Washington, DC and I still pay collision coverage for it. Would it be wise if I just drop it and what other things can I do to save on my auto insurance?

Nigel

Washington, DC

Your collision auto insurance coverage would be used to pay for the repair of your car in an accident that you cause. Your old car will be considered “totalled” if the repair costs would exceed a certain threshold of its value, such as 70%. At that point, the auto insurance provider would tow away your vehicle and offer you the total cash value of your old car. It might not make financial sense to pay for the premium rates for so many years to maintain collision coverage for an old car. In other words, you may opt to drop the collision coverage for you to save on your auto insurance in Washington, DC.

The other thing that you could do to save on your auto insurance is to take advantage of discount for low-mileage. Some auto insurance providers offer discounts to motorists who put less than a certain number of miles on their car every year. You could also be offered discounts for airbags and other safety features and also ask about discounts on antilock brake.

Tags: auto insurance, car insurance discounts, collision coverage