Why Removing Comprehensive and Collision Coverage is a Huge Mistake

Hey guys, Jason here with 303 insurance brokers, and I hope you’re doing great today. I know I am, and I wanted to share another great insurance tip with you. One of the most common questions that I receive when working with new clients and existing clients is how to save money on their auto insurance. Whether they should remove comprehensive and collision coverage.

What is Comprehensive and Collision Coverage

Comprehensive and Collision Coverage will protect your vehicle, the coverage will replace your car on an actual cash value basis if it were to be totalled in a loss. Whether an accident or it was stolen, held on or anything like that. It’s one of the most expensive coverages that you carry on your vehicle.

It’s also a condition of almost every auto loan out there. When they get rid of their loan, so many people think about, Hey, maybe can I save money by removing comp and collision? And I always, always hesitate and have wanted people to think about why they would be removing comp and collision.

Is it worth it to remove Comprehensive and Collision Coverage on your Auto Insurance?

It’s going to save money, but it will give them significant exposure. If something happens to the vehicle, auto thefts are up to crazy in Colorado right now. So if we don’t have that comprehensive coverage and your car gets stolen. You are on your own to go out and replace it.

Question you should ask yourself before removing comp and collision

So there are two main criteria. I ask everybody to consider before they run to remove comprehensive and collision coverage from their vehicle.

• what is the value of the vehicle? 
• Does the vehicle still have good value to it? 

Anything in the last 15 years, if your answer is yes, vehicles have better value, lasting longer than they have in a long time, and they have more value to them. 

•  What is your auto owner’s ability to go out and replace the vehicle? 
• If something were to happen to the vehicle, if it were to be a total loss, do you have the ability to take out a loan? 
• Do you want to take out a loan?
•  Do you have the ability to lose whatever that actual cash value is?
•  Can you come up with that?
•  Are you willing to risk that over the insurance?

So I recommend, is no. We keep Comprehensive and Collision Coverage on your vehicles. There are some excellent value with that, but if you want to talk about it more, reach out to me, Jason, with 303 Insurance Brokers.