You should consider dropping comprehensive car insurance in favor of third-party-only cover when the market value of your vehicle drops so low that annual insurance premiums and excess costs equal or exceed the car's total worth. If an older car is worth only 1,500 dollars and comprehensive insurance costs 800 dollars a year with a 500-dollar excess, paying for full coverage makes poor financial sense, as a single claim would yield minimal net payout after deductibles.
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