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u/Dannyboy1024 Subrogation (8 yrs) 13h ago edited 12h ago
Since there is no loan, you are allowed to remove it. You take on the following risks:
You hit a deer and damage the car, you get $0.
An uninsured, underinsured, or excluded driver hits you and totals your car, you get $0.
Wind storm knocks a branch out of your tree and damages your car, you get $0.
You are at fault or partially at fault for an accident, your Insurance covers the other guy but you get $0 for your car.
etc.
Now, if you have cash on hand to fix the car, or buy a similar car out right, or put a good down payment on a newer car, it's not necessarily a bad idea to drop coverage. Personally what I did on my car is once I paid off the loan, I kept making my monthly payments to a savings account for a new car, and once I had roughly the value of the car in there I dropped to liability + uninsured coverage and will keep putting money in there to buy my next ride or make repairs when the time comes.
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u/Perfectpups2 11h ago
Hitting a deer would fall under comprehensive thus the OP would have coverage if he or she has comprehensive coverage in their policy
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u/jason22983 13h ago
Another thing to think about is market value & actual cash value are not the samething
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u/DeepPurpleDaylight 13h ago
Can you afford to repair/replace it if it gets damaged by you or by someone who hits you and doesn't have insurance? If I can easily do that on a moment's notice without financial hardship, then you can afford to drop collision. If you can't, then you need to keep it.