Many of our clients ask us this question and we can definitely help you find the right answer. The right answer depends on a few factors.

 

What is the actual value of your auto? One of the best ways of determining the value of your vehicle is to go online to the Kelly Blue Book (http://www.kbb.com/) or some other comparable site. Your bank may also be able to give you a value called the “loan value”. After you determine the retail or loan value of your vehicle, ask yourself the following questions.

 

Is your vehicle worth under $1,000, then you should consider dropping physical damage. Physical damage is comprehensive, collision and sometimes towing and rental reimbursement.

 

If your vehicle is worth more then $1,000 but less then $4,000, then ask your self the following question.

 

Do you have cash in your savings account equal to at least the value of your auto?

 

If yes, then you should consider dropping physical damage.

 

If no, then you should keep the physical damage on your vehicle because if your vehicle is destroyed, you will not have the cash readily available to repair or replace your vehicle.

 

If your vehicle is worth more then $4,000, most people should keep the physical damage. An exception to this guideline would be if the physical damage insurance is very high as the case would be for a young driver or a driver that has had many accidents or traffic violations on their driving record.

 

Please remember we offer this information to you as a guideline. It’s impossible to address every person’s individual situation. You should discuss with your agent your specific situation. However, keep in mind no agent has a crystal ball so when you drop physical damage on your vehicle, you are taking a chance. Sometime the chance is worth taking.