Start with an honest assessment of the value of your car. Actual cash value (less the deductible) is the most you can expect from the insurance company if a covered loss totals your vehicle. You may be surprised by your car's ACV. An older model can provide reliable transportation but have low actual cash value due to minor damage or high mileage. Compare your vehicle's ACV to the insurance policy's physical damage premium and your out-of-pocket deductible responsibility.

Next, consider your finances. Have you saved enough money to pay for unexpected body damage, crash-related mechanical repair, or to buy another vehicle? Keep physical damage insurance in place if the answer is no.

There are ways to lower the physical damage premium. Start by exploring higher comp and collision deductibles. Compare the premium savings with your out-of-pocket costs and the car's actual cash value.

Or, keep comprehensive, drop collision, and add uninsured motorist property damage coverage. You will be on your own for crash-related repairs but have insurance protection for damage related to a deer hit, hail, theft, rock chips, etc. Adding UMPD means your insurer will pay for repairs to your vehicle if an identified, uninsured, at-fault driver crashes into your vehicle. UMPD has a deductible.

Do the math and evaluate all the alternatives before dropping comp and collision coverage.