Do you have a clunker? You may want to drop comprehensive and collision insurance that pay according to the damage to your car. Collision insurance is used to fix damage to your vehicle if it flips over, crashes into an object or another vehicle.
Comprehensive insurance, on the other hand, pays if someone steals your vehicle or if it’s damaged by vandalism, storms or by knocking an animal like a deer.
If your car’s worth is less than the deductible plus the annual coverage amount, you may want to drop them. Comprehensive and collision hardly pay out more than the car’s worth.
Decide whether you want to pay for coverage that might compensate you only a small sum, if at all.
If you drop these two programs, set aside the funds you’d have used on down payment or vehicle repairs on a newer vehicle.