Many consumers have started to get into the habit of trying to find as many ways as possible to save money. One area where some consumers have had success is with Auto Insurance Lebanon PA. A common question asked at the Strock Insurance Agency by many customers is whether or not to keep collision and comprehensive coverage. Collision coverage on a car can be quite expensive. However, it is not wise for some consumers to get rid of collision coverage. For others, dropping this coverage can result in big savings. Consumers should definitely look at dropping collision coverage, but many will find out that they are better off keeping it.
First of all, those who are financing their vehicles should keep collision coverage. In the auto loan contract, there is almost always a provision to maintain sufficient collision and comprehensive coverage while there is an outstanding balance. The lender may purchase an auto insurance policy that will cover the balance on the loan if there is damage or loss to the financed vehicle. That policy will likely be far more expensive than what the consumer can purchase. Those who have a loan or lease on their vehicles should not drop collision and comprehensive coverage.
Those who have high value vehicles should not drop collision and comprehensive coverage from their Auto Insurance Lebanon PA. A total loss could cost thousands of dollars above what is paid in premiums for collision and comprehensive coverage. This is regardless of whether or not the vehicle is being financed or leased. Cars and trucks that cost $10,000 or more to replace should maintain full coverage.
If the vehicle has little value and is not being financed or leased, it probably makes sense to drop collision and comprehensive coverage. The motorist would need to pay the deductible when there is a claim. The insurer will not pay more than the current market value of the vehicle. Finally, the motorist should deduct the premiums paid for the coverage. The amount paid by the insurer may be very limited after a collision or comprehensive claim on a low value vehicle. That is why it is often advisable to drop full coverage when vehicles have lost most of their value.