When Should You Drop Collision Coverage?

Actually the better question is this: Am I paying more for comprehensive and collision coverage each year than my car is worth? When you answer THAT question then it should become clear to you if you should drop collision or comprehensive (or both) from your personal auto insurance policy. Most people make this change generally when the car is ten years old or older. There is no hard-fast rule about this, other than you need to make sure you own the vehicle free and clear with no outstanding loan balance. This decision also involves personal financial comfort level...ask yourself: if I get in a wreck, and it's my fault can I stomach the fact that I won't get any money to repair my car from the insurance company? But the first and foremost factor should be insurance premiums to car value ratio....if the premiums are amounting more than the value each year, than you are smarter to drop the collision.

A New Year, Update Your Life Insurance...

Since new years seem to produce new resolve, save a little of that resolve for your Life Insurance update. WHY and WHEN should you update your Life Insurance? Whenever you have had recent LIFE CHANGES. These life changes can take the form of a change in marital status, an increase in income, a new home purchase, a new job, a new baby or a new business. This is certainly not an exaustive list but these examples represent life changes which result in more for you to financially protect. If you have had changes like these in the past several years, then you may be due for a Life Insurance update. Remember what we said before...if your survivors are protected  soley by the life insurance you have at work, then they are woefully unprotected. Don't put it off...call your agent this week.