Wade Bradley is a frugal and careful financial planner. One of his money-saving decisions is to continue driving his nine year-old car, which is now worth about $7,500. In order to save money on his car insurance, Wade increased his deductible from $500 to $1,000, which reduced his annual premium by $200. He has just decided that he no longer needs the collision coverage on his policy, which pays for the repair or replacement of his car if damaged. Wade has consequently decided that he should take the risk that he would have to pay for the repair or replacement of his low-value car rather than to continue taking the certain loss of the higher-priced insurance coverage. This decision will save him several hundred dollars a year.

Do you agree or disagree with Wade's actions? Please address both 1)increasing the deductible and 2)dropping collision coverage