You should consider dropping comprehensive auto insurance in favor of third-party-only coverage when the market value of your vehicle drops so low that annual premium costs and deductibles equal or exceed the total worth of the car. If an older commuter vehicle is worth only 1,500 dollars and comprehensive insurance costs 800 dollars a year with a 500-dollar excess, paying for full coverage is financially irrational, as a single claim would yield negligible net payout after accounting for your policy deductibles.
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