When should I drop collision and comprehensive coverage on an old car?

Consider dropping collision and comprehensive when the cost of that coverage stops making economic sense relative to your car's value. A common rule of thumb: if your annual premium for collision plus comprehensive exceeds about 10% of the car's actual cash value, you're paying a lot to insure very little. Remember these coverages pay out only up to the car's depreciated value minus your deductible, so on a car worth $3,000 with a $1,000 deductible, the most you'd ever collect is roughly $2,000 — and you might pay $400–$600 a year for that. If you could comfortably replace the car out of savings, self-insuring usually wins. Always keep liability and uninsured-motorist coverage no matter how old the car is, since those protect against costs far larger than your vehicle. Check your car's current value before deciding.