Collision coverage is priced to pay for the repair or replacement of your vehicle. On a newer car worth $25,000, that math is obvious. On an older car worth $5,000, it's worth a harder look.
The Break-Even Math
A simple rule of thumb: if your collision deductible is $1,000 and your car is worth $4,000, the maximum a claim could pay you is $3,000 (market value minus deductible). If you're paying $600 per year for that coverage, you're spending 20% of your theoretical maximum payout every year.
Keep Comprehensive Even When You Drop Collision
Comprehensive coverage is typically much cheaper than collision and covers theft and weather damage - so even on older cars, comprehensive alone is often worth keeping.
Your agent can pull the current market value estimate carriers are using for your vehicle and help you decide based on your actual numbers, not a rule of thumb. Resources like the Kelley Blue Book can give you a starting point for your vehicle's current market value in the North Carolina market before that conversation. Contact IronHaven for a quick policy review.
