#6. Drop Comprehensive And Collision On Old Cars

Clunker cars should not be getting comprehensive coverage and collision, and here’s the reason why. Collision covers the repair costs that come from damage in instances where your vehicle gets into an accident with an inanimate object or another vehicle. Comprehensive covers damage done by vandalism, animals and the weather, as well as in instances when your car is stolen.

Both seem like sound investments, but here’s the kicker- insurance will only pay for the damages up to the max value of the car. That said, it won’t make sense to get both if your car has a low market value.