You have an eight-year-old car with a market value of only $4,000. The annual cost of collision insurance is $500.
If your state does not require collision insurance, should you continue to purchase it? Give your reasons.

Should you carry liability insurance? Explain.

Collision insurance is a type of insurance that can completely or partially cover your costs in case you have an accident. This includes money to repair your car or even to replace it.

Is collision insurance a good idea in this case?

Considering the collision insurance cost ($500) is rather high compared to the value of the car ($4,000) paying this type of insurance is not recommended except if it is required by the state.

Instead, you can rely on other types of insurance including liability insurance which can help you cover the damages to other cars or properties because these are likely to be higher than $4,000.

Learn more about insurance in: https://brainly.com/question/989103

You have an eight-year-old car with a market value of only $4,000. The annual cost of collision insurance is $500. If your state does not require collision insurance, should you continue to purchase it? Give your reasons. Should you carry liability insurance? Explain.

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What is collision insurance?

Is collision insurance a good idea in this case?

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You have an eight-year-old car with a market value of only $4,000. The annual cost of collision insurance is $500.
If your state does not require collision insurance, should you continue to purchase it? Give your reasons.

Should you carry liability insurance? Explain.