When to Drop Collision Coverage on an Older Car

Wondering if it's time to drop collision on your older car? Here's the step-by-step math Palm Beach County drivers should run first.

TL;DR:** Once your car's value drops close to what a year or two of collision premium costs, it may be time to drop it, but only after you've checked the actual cash value, your loan status, and your emergency fund. Do the math first, don't just guess by the car's age. Hey neighbor, Coastal Kayla here. I spend most of my day talking boats and golf carts, but this question comes up constantly from folks trading in their old sedan for a new-to-them SUV or wondering why they're still paying collision on a car with 150,000 miles on it. Let's figure out if it's actually time to drop that coverage, because guessing wrong in either direction costs you money. And just to be clear about what "guessing wrong" looks like in both directions: if you drop collision too early and your car gets totaled in a Turnpike fender-bender, you're out of pocket for the full replacement. If you keep it too long on a car worth $1,800, you might spend more on premiums over two years than the car would ever pay out. Neither one feels good, so let's actually run the numbers. What you need Before you call anyone, pull together these things: Your current auto policy declarations page, so you can see exactly what you're paying for collision and comprehensive separately Your car's current market value, not what you paid for it or what you think it's worth Confirmation of whether you still owe money on a loan or lease A rough sense of what you'd do financially if the car got totaled tomorrow That's it. No spreadsheets required, though if you like spreadsheets, this is a fun little one to build. Seriously, a simple three-column table with ACV, annual premium, and cumulative premium over three to five years will show you the answer almost instantly. I've seen clients stare at that table and immediately…