When to drop collision coverage on your car insurance

 Collision is a coverage offered by car insurance companies that covers physical damage to your vehicle in the event you hit (or are hit by) another object. In general, it's good practice to pay for collision coverage. Most people want their car fixed after an accident and don't necessarily have the money to pay for repairs out of pocket. However, there are times when a consumer shouldn't pay for collision coverage.

• Your car is on blocks. Vehicles that are disabled and on blocks do not require collision coverage. They aren't being driven and normally it'll be a few weeks before they are on the road again. So, the risk of an accident is minimal.

• You have other coverage. Dual collision coverage is normally a waste of money. Why? In the event of a loss, the secondary insurance carrier often offsets any payment based on what is reasonable and paid already by the primary insurance carrier. As a result, the left over amount isn't paid completely or at all

• Your car's ACV is low. ACV stands for actual cash value. This number is listed in the Kelley Blue Book based on the brand and year of a vehicle. If the ACV for your vehicle is low, your car is likely to get totaled out during a collision claim and merit little in pay.

• You drive an old clunker. Vehicles ten years or more in age normally get totaled out during a collision claim by car insurance carriers. Why? Their market value is low, which means the owners aren’t paid much in the end. So, unfortunately, the premium towards collision ends up going down the drain.

Use these scenarios to change your approach to car insurance. You might be able to cut corners and save money. But always consult your independent insurance agent first to ensure that eliminating collision coverage will not create detrimental coverage gaps.