When should I drop collision coverage?
Should I drop collision coverage? When to drop collision coverage on your car depends on if your car insurance rates cost more than your car is worth. Reducing your coverage to liability only can help lower car insurance costs on an older vehicle, but you should compare car insurance quotes online before reducing your coverage. Enter your ZIP code below to start comparing now.
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Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...
Licensed Insurance Agent
UPDATED: Nov 8, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 8, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- If you lease a vehicle, you are probably required to have extra coverage besides the state minimums
- Comprehensive and collision coverage are two separate types of car insurance coverage
- Understanding how comprehensive and collision coverage are different can be very beneficial
Most lenders will require that you have comprehensive and collision coverage in addition to your state-required coverage.
Many people, however, don’t realize that there is a difference between comprehensive insurance and collision insurance.Some people mistakenly keep their comprehensive coverage and drop their collision coverage thinking that the comprehensive coverage provides insurance for every contingency.Understanding the difference is critical if you want to know when dropping collision coverage is okay and when it is not.Read on to learn when you should keep and when you should cancel collision coverage from your auto insurance policy and then be sure to enter your zip in to compare free quotes for car insurance!
The Difference between Comprehensive and Collision Insurance Coverage
Comprehensive insurance is important because it covers damage caused by nature including hail, flood, and fire.In addition, comprehensive coverage provides you with coverage for theft and vandalism as well as damages caused by animals.Collision insurance covers all collisions that occur with your vehicle including if you strike another car, an animal, or an object such as a tree, or fence.
As you can see, each of these types of coverage offers something valuable and different to your insurance coverage.
Both types can be expensive, however. In order to keep your premiums down, you will need to choose a deductible level that you are comfortable with.The deductible represents the amount of money you will pay out of pocket if you make a claim. You should check with your insurance company to see what the deductible options are.
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When it’s Okay to Drop Collision and Comprehensive Coverage from Your Vehicle
Some insurance agents will recommend that you never drop either of these types of coverage.Usually, individuals without these types of coverage cannot afford the out of pocket expenses to repair their vehicle if an accident does occur.If you live in a high-risk area, then you may want to continue your comprehensive coverage. But if damage from nature is rare in your city or state, then you can save a lot of money by dropping your comprehensive coverage.However, collision coverage is different because the insurance required by states does not coverage damage to your own vehicles if you cause an accident.The state liability minimums will cover whatever the damage is to the vehicle that you hit, not your own. With collision coverage, however, your vehicle is also covered if you are the cause of the accident.
However, it doesn’t make sense to pay for coverage that costs more than the value of your car or truck.
Even the most careful drivers may find themselves in a car accident and having the right coverage can make the difference between getting everything repaired immediately or fighting lawsuits and financial disaster.
Choosing the Most Affordable Car Insurance
Now that you have at least a basic understanding of what collision and comprehensive coverage means for your vehicle, you need to decide what to buy.Like almost everyone else, you probably want to get the best prices for the type of insurance that you choose. The quickest way to do this is by using our free quote tool at the top of the page.
Using our free quote tool allows you to compare the rates between several companies at one time.
You can compare your state’s minimum coverage requirements, a medium coverage level, or a full complement of every type of insurance that you could want from an auto insurance company.Give our FREE quote tool a try by entering your zip code to start comparing insurance rates today.
Case Studies: When should I drop collision coverage?
Case Study 1: Assessing Cost vs. Value
John owned an older vehicle with a market value of $3,000. He reviewed his car insurance rates and found that the cost of collision coverage exceeded the worth of his car. After careful consideration, John decided to drop collision coverage and switch to liability-only insurance, saving money on his premiums.
This case study highlights the importance of evaluating the cost of insurance in relation to the value of the insured vehicle.
Case Study 2: Evaluating Coverage Needs
Emily had comprehensive and collision coverage on her car, but she lived in an area with low risk of natural disasters and had a secure parking facility. After assessing her circumstances, she determined that the likelihood of needing comprehensive coverage for damages caused by nature was minimal.
She chose to drop comprehensive coverage and maintained only collision coverage, aligning her policy with her specific needs. This case study emphasizes the importance of evaluating personal circumstances when deciding on coverage options.
Case Study 3: Comparing Quotes for Informed Decisions
Sarah owned an older vehicle and wanted to explore options for reducing her car insurance costs. She used an online quote comparison tool to gather quotes from multiple insurance companies. Through the comparison process, she discovered that dropping collision coverage would result in significant savings without compromising her coverage needs.
Sarah made an informed decision based on the quotes she received. This case study highlights the value of comparing quotes to find the most affordable insurance options.
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Frequently Asked Questions
When should I drop collision coverage?
Dropping collision coverage on your car depends on if your car insurance rates cost more than your car is worth. Reducing your coverage to liability only can help lower car insurance costs on an older vehicle, but you should compare car insurance quotes online before reducing your coverage.
What is the difference between comprehensive and collision insurance coverage?
Comprehensive insurance covers damage caused by nature, theft, vandalism, and damages caused by animals. Collision insurance covers collisions with other vehicles, animals, or objects such as trees or fences. Both types of coverage offer valuable protection but can be expensive.
Is it okay to drop comprehensive coverage from my vehicle?
It depends on your location and the likelihood of damage from natural events. If you live in a high-risk area, it may be advisable to keep comprehensive coverage. However, if damage from nature is rare in your city or state, you can save money by dropping your comprehensive coverage.
Why is collision coverage different from state-required insurance?
State-required liability insurance covers damage to the other vehicle involved in an accident, not your own vehicle. Collision coverage, on the other hand, provides coverage for your own vehicle if you are at fault in an accident.
When does it not make sense to pay for collision coverage?
It doesn’t make sense to pay for collision coverage that costs more than the value of your car or truck. If the cost of collision coverage exceeds the worth of your vehicle, it may be more economical to drop the coverage.
How can I choose the most affordable car insurance?
To find the best prices for car insurance, you can use a free quote tool that allows you to compare rates from multiple companies. By entering your ZIP code, you can compare different coverage options and find the most affordable insurance for your needs.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.