A liability-only policy provides absolutely no coverage for repairs to your vehicle. There are several factors to consider before dropping comprehensive and collision coverage on your car.

Start with an honest assessment of the value of your car. The most you can expect from the insurance company if your car is damaged by a covered loss is its actual cash value (less the deductible). You may be surprised by your vehicle's ACV. An older model car may provide reliable transportation but have low actual cash value due to minor damage and/or high mileage.

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

There are ways to lower your physical damage premium. Start with exploring higher comp ad collision deductibles. Compare the premium savings to your out-of-pocket costs and the actual cash value of the vehicle before making a change.

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 for damage from a deer-hit, hail, theft, rock chips, etc. Adding UMPD means your insurer will pay for repairs to your vehicle if an identified at-fault driver has no coverage. UMPD has a maximum payout and a deductible.

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