Bruce's 2003 Chevrolet Malibu is pretty old now,and its resale value is low.Since he is always interested in saving insurance premium dollars when appropriate,which of the following types of insurance should he consider dropping?

Question

Quizplus · Accepted Answer

Collision coverage pays for damage to Bruce's car in the event of an accident, but since the car is old and has a low resale value, it may not be worth paying for this coverage anymore. Bruce could consider dropping collision coverage to save on his insurance premiums, especially if he has enough savings to cover the cost of repairing or replacing the car if it is damaged in an accident. However, he should still keep property damage liability and uninsured motorist coverage to protect himself financially in case he causes damage to someone else's property or is involved in an accident with an uninsured or underinsured driver.

Bruce's 2003 Chevrolet Malibu Is Pretty Old Now,and Its Resale