auto insurance: collision

[feh]

Hi folks!

Are there any online resources that could help me determine what types of protection to get in an auto insurance policy? I'd be willing to read topics on all aspects, but I'm particularly interested in collision - for a given car's age and value, what deductible value makes sense, or if it should be purchased at all.

Thanks.

[disneysteve]

I believe the general rule of thumb is to drop collision coverage when the premium exceeds 10% of the car's value, so if the car is worth $3,000, don't spend more than $300 for coverage. Of course, you need to look at your situation. Do you have a fully-funded EF? Can you afford to buy a new car if that one gets wrecked?

As for deductible, the higher the better, but again, make sure you have the funds to cover it if necessary.

[feh]

I believe the general rule of thumb is to drop collision coverage when the premium exceeds 10% of the car's value, so if the car is worth $3,000, don't spend more than $300 for coverage.

Is this based on annual insurance cost?

[disneysteve]

Is this based on annual insurance cost?

Yes it is.