Don't squander money on full coverage for an older car. Instead, consider dropping everything but liability insurance and using the savings for your next auto purchase.
If you're paying for collision and comprehensive insurance coverage on an older car, you're probably wasting your money.
Yet many people I talk to are reluctant to drop this coverage, which pays for:
- The damage you do to your own vehicle when you cause an accident.
- The loss you suffer when your car is stolen or damaged by something other than a crash (such as a falling tree squashing it flat).
Collision and comprehensive coverage are two of the three major components of car insurance. The third is liability coverage, which pays for the damage you do to other vehicles and people.
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