Question

State Farm
State Farm Fire and Casualty Company
AT? NAMED NSURED
Matt & Sarah Justice
123 Get The W St.
Atlanta, GA 30306
11-2097-4 P
201A BECLARATIONS PAGE
FIRE OVL
PAGE 1 OF 2
POLICY NUMBER 35 5055-A
PoPEROaL 2 01710 JAN 16 2018
AGENT
PHONE: (770)
DON APAN IS UR NO RATATE ATATEMENT IS ENCLOSED.
YOUR CAR
YEAR
2007
MAKE TOYOTA
MODEL CAMRY
BODY STYLE
4DR
SYMBOLS
COVERAGE & LIMITS
Liabilty Coverage
Bodily Injury Limks
Each Person,
Each Acoident
$100,000
$300,000
Property Damage Limit
Each Accident
$100,000
Medical Payments Coverage
Limit - Each Person
31.00U
Comprehensive Coverage - $200 Deductiblo
Collision Goverage - $1,000 Deductible
Emergency Road Service Coverage
Car Rental and Travel Expenses Coverage
Limit - Car Rental Expense
Each Day.
Each Loss
80%
$1,000
Uninsured Motor Vehicle Coverage (Difference-In-Limts)
Bodily Injury Limts
Each Person,
$50,000
Each Accident
$100,000
Property Damage Limit ($250 Deductible)
Each Accident
$50,000
Total premium for JUL 21 2017 to JAN 16 2018.
VEHICLE ID. NUMBER 4T1B
CLASS
603011H300
PREMIUMS
$544.58
$54.55
$66.98
$193.70
$4.39
$27.07
$99.19
$990.46
This is not a bill,

The policyholder is really tight on cash and wants to trim down their insurance premiums so they can devote more of their budget to paying off a large credit card debt. Which coverage makes the most sense to eliminate?


Responses

Collision coverage, because their car is quite old and the deductible is relatively high
Collision coverage, because their car is quite old and the deductible is relatively high

They cannot eliminate any of this coverage -- it is all required by Federal law
They cannot eliminate any of this coverage -- it is all required by Federal law

Uninsured motor vehicle coverage, because they already have car insurance, so they won’t ever be uninsured
Uninsured motor vehicle coverage, because they already have car insurance, so they won’t ever be uninsured

Liability coverage, because it is the most expensive part of their bill

Answer 1

Collision coverage, because their car is quite old and the deductible is relatively high.

Why: collision pays to repair or replace their own car after an at‑fault crash. If the Camry’s market value is low, the annual collision premium plus a $1,000 deductible often exceeds what they’d recover in a total loss — so dropping collision typically gives the biggest premium savings with acceptable risk. They should keep liability (usually required by state law) and strongly consider keeping uninsured/underinsured protection. Before cancelling, compare the car’s actual cash value to the cost of the collision coverage and check state/loan requirements and any lender requirements.