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Coverage Basics
How collision and comprehensive coverage typically work as your car's market value declines.
Collision and comprehensive coverage pay up to the vehicle's actual cash value, minus your deductible. As that value falls, the practical ceiling on a claim falls with it.
That does not automatically mean dropping those coverages is right for you. It means the math is worth revisiting every year or two, particularly after 8 to 10 years of ownership.
We cover the questions to ask, the numbers to gather, and the tradeoffs to consider, without pushing you toward any specific carrier or product.