There's a point where carrying full coverage on an old car costs more than it could ever return. Here's the math.
Coverages to reconsider on low-value vehicles
- Collision — the most expensive add-on, capped at ACV
- Rental reimbursement — small savings, modest benefit
- Roadside — often duplicated by AAA, credit cards, or manufacturer
Coverages to keep regardless
- Liability — never tied to your vehicle's value
- UM/UIM — protects YOU
- PIP — covers medical bills
- Comprehensive — usually cheap; covers theft, hail, animal strikes
Frequently asked questions
When should I drop collision coverage?
When annual premium exceeds 10% of the car's value plus deductible.
Is comprehensive worth keeping on an old car?
Usually yes — it's cheap and covers expensive non-collision losses.
This article is for general information only and is not legal or tax advice. For guidance specific to your situation, talk to a licensed Texas insurance agent. Ready to put it into practice? Get a free quote or request a policy review.