How do you reduce the cost of collision coverage?

Question

How do you reduce the cost of collision coverage?

Answer 1

You can raise your deductible, pick a less expensive vehicle or determine if any other discounts could apply.

The deductible is what you pay out of your own pocket before your insurance policy kicks in. The higher the deductible, the lower your premium. For example, increasing your deductible from $200 to $500 on collision coverage could reduce your premium.

Collision coverage is generally not worth purchasing for older vehicles with high mileage because if you ever file a claim for significant damages, your insurance company will likely declare your vehicle a total loss rather than fix it. That's because the cost of fixing your vehicle far exceeds its market value or actual cash value. The value you get for the vehicle in the total loss may not justify the premiums you pay for the collision coverage.