Page 12 - AAA Every Day – AAA Hudson Valley – January/February 2022

INSURANCE NEWS
With a new year ahead of us, we tend to look at things and reflect on whether or not we really need to keep them. It could be possessions as simple as
an old sweater or a stack of books from years ago, or something more complex such as keeping collision and comprehensive coverage on your insurance policy for an older vehicle. One of the most common questions asked at the insurance agency is when to remove collision from a car.
To clarify, the comprehensive coverage on an auto insurance policy is meant for anything that happens
to the car not at fault to you, such as fire, thievery, vandalism and hitting an animal. In New York State, this typically includes windshield and glass coverage, with a $0 deductible. Comprehensive tends to be the cheapest part of the policy and with the coverage you get, I always recommend keeping it.
Collision coverage, on the other hand, is meant for anything that happens to the car when you are at fault. An “at-fault” accident could mean hitting another car or driving into a guard rail. There are many more factors involved when it comes to deciding if it’s still worth keeping this coverage on a particular vehicle. The old notion used to
be that once the car is 10 years or older, it no longer has
a loan on it or has so many miles on it, get rid of collision.
Shutterstock: Jack Bkk
However, today’s used vehicles are holding their value and are not depreciating as fast as they once did. The key here is to check out a reputable used-car value site and see how much the vehicle is worth. Keep in mind, collision is subject to a deductible. You might be pleasantly surprised at the car’s value minus the deductible compared to the cost of keeping the collision coverage.
Another important consideration is who is driving that vehicle. With newly licensed drivers, collision coverage can be very expensive. One thought here is to increase the deductible. A typical deductible is $500, consider increasing it to $1,000. Again, see what the car is worth to judge whether the coverage is worth it.
Whether you decide to keep collision coverage or not, the main thing to keep in mind is what would happen if you were to have an incident at fault to you and not have collision coverage. What steps would you take to replace your vehicle? You almost always need a down payment to purchase another vehicle, at least with collision coverage in place, there will most likely be something to put towards your next set of wheels.
Have your auto insurance reviewed and get help deciding what coverage is best for you. Contact your AAA Hudson Valley Insurance Agents at 518-649-1717 or AAA.com/Insurance.
12 I WINTER 2022
Eman Badr is a Certified Professional Insurance Agent and Manager of AAA Hudson Valley Insurance Agency.
Comp and Collision:
To Keep or Not to Keep