The rule of thumb for dropping collision insurance is to drop it when a vehicle’s annual collision premium, plus the deductible, cost more than 10% of the vehicle’s current value. Some experts also advise dropping collision insurance when the vehicle is more than 10 years old. Since the average driver gets into an accident once every 10 years, these rules exist to keep drivers from paying more for insurance over time than they would get from filing a claim. However, you should think of these rules as loose guidelines while also taking your individual circumstances into account. For instance, if you cannot afford to replace your vehicle and you need it for transportation, dropping collision insurance could leave you stranded or in debt. Similarly, if you have a history of at-fault accidents, or a teenager is leaning to drive using your vehicle, you are particularly likely to need collision insurance. You can calculate your vehicle’s insurance by going online to Edmonds, Kelley Blue Book or NADA.
Very few auto accidents are 100% at fault. Most accidents are settled on a percentage of blame. For example, if you are involved in an auto accident and it is determined that each driver is 50% at fault, you will be responsible for 50% of the damage to the other vehicle and other diver is responsible for 50% of the damages to your vehicle. This works the same way if the percentage is 60/40, 70/30 80/20, etc. Without collision coverage, you will have to pay for your percentage of damage to your vehicle that the other driver is not responsible for. With collision coverage, your insurance company will pay you for all the damage to your vehicle minus your deductible.