Most car insurance companies allow you to choose your deductible amount. When you drive a high-value vehicle, and the parts and labor are expensive, you might need the comprehensive cover. For example, if you have a collectible vehicle, you might want to protect it more than a more common, ten-year-old model that is cheaper to fix.
The general rule is that you should drop your comprehensive cover if you are paying too much based on the value of your car. Take your car's value, subtract the deductible, then take away the cost of the six-month policy. If you get a negative amount, chances are that it is not worth paying for a comprehensive policy and you have to contact your insurance company to cancel your payments.
Collision coverage will protect you financially when you get involved in a road traffic accident. The most common scenarios the cover applies for are:. A collision cover is not required by law in any of the states. However, just like with a comprehensive cover, you might be obliged to take out this level of protection when you lease a vehicle, so the lender can protect their assets.
Many lenders will add the cost of this policy to the lease fee automatically. Just like comprehensive insurance, a collision cover has a deductible amount you choose. You will have to pay your share and the insurance company will have to pay the remaining balance to the repair company or to you, depending on your agreement. Collision insurance is a supplemental cover, and it is up to you whether you take it or not. If you are driving on dangerous roads, you might want to reduce your risk and take this cover.
According to Money Under 30 , collision insurance will help you pay the cost of repairs, unless your car is "totaled," which simply means that it would cost more to fix than what it is worth. Many insurance companies will offer comprehensive and collision cover in one package, you don't need to buy them together.
You can pick just the one you need. If your car is not worth a lot, you might want to drop the collision insurance. Always consider the cost of parts and repair before making a final decision. If you are a safe driver and are not likely to cause an accident, you might be better off to claim on the other driver's insurance if they were at fault.
Check our guide on collision insurance for more information. It is a good idea to consider your driving habits, your vehicle's safety features, and your driving history. If you are a safe driver, you might not need a collision cover. Examples of what collision insurance does not cover include:. To cover your own medical expenses, you will need a medical payments MedPay or personal injury protection PIP policy.
However, average premiums varied widely by state. The most expensive area was Washington, D. The cost of any insurance policy varies not only from state to state, but also from driver to driver. Personal details such as your age, gender, marital status and driving record factor into the cost of an auto policy, as do details about the vehicle you drive and where you live within your state.
You can reduce your costs by setting lower policy limits or a higher deductible. You are not required by law to maintain a collision insurance policy in any state. However, your lender may require that you purchase a collision policy if your vehicle is leased or you still owe car payments. Although you may not be required to maintain a collision insurance policy, it can still be a good idea.
A collision insurance policy can protect you from a costly repair or replacement after an accident. If you have an old car or the value of your car is low, it may not be worth it to purchase collision insurance. When trying to decide if a collision insurance policy is right for you, estimate the value of your vehicle and subtract your deductible.
That amount is the most value you can expect to get from a collision insurance policy. Compare this against your collision insurance premium to determine if collision insurance is worth it for you. The best way to find the right collision insurance policy for your needs is to compare providers. Compare free, personalized collision car insurance quotes using the tool below, and be sure to consider two of our top-rated providers: Geico and Progressive.
In our review of the best car insurance providers, Geico came out on top. The insurer has a reputation for excellent customer service, which is reflected in its consistent, above-average ratings in the J. Power U. And replacement parts might be so expensive as to easily exceed the deductible. Older vehicles that are still drivable, but have lost a huge chunk of their value through depreciation, have their own calculus. When insuring these vehicles, it makes sense to drop one or both of these coverages.
Classic and vintage car owners have special considerations to make. Owners of these vehicles typically have classic car insurance. So, given the cost of collision and comprehensive coverage, and the potential payouts, does it make sense at some point to keep one coverage and drop the other, and can you do this?
The answers: Yes and yes. While insurers generally sell them together, and drivers of older cars often drop them at the same time, Poe and Worters both say that comprehensive insurance is a better value for the money than collision coverage.
Hail storms are also a familiar threat, especially to car windshields that are also vulnerable to road litter scooped up and thrown by car and truck tires. Some states now require insurers to repair windshields without cost to the car owner—as a safety measure—if the vehicle has comprehensive coverage. Other common threats include theft, not only of a car, but also of expensive parts like the airbags found on all newer cars. And there is always the threat of a natural disaster.
An estimated , vehicle owners lost their cars in when Superstorm Sandy inundated the New Jersey and New York coastlines. Car owners who value durability and reliability often plan to keep their cars for as long as possible.
Toyota Prius Source: iSeeCars. While collision and comprehensive insurance are often purchased together, they are separate coverage types. You can drop one or both.
Collision insurance covers problems like car accidents while comprehensive insurance covers problems like car theft, collisions with animals, vandalism, fire, floods, hail and falling objects like tree branches.
Dropping collision or comprehensive coverage could leave you exposed to problems like car accidents, car theft, vandalism, floods and fires. There are other ways you can reduce your car insurance costs, like raising your deductible and asking for a review of possible auto insurance discounts. He has written multiple cover stories, hard-hitting features and executive profiles for major media outlets, and is the author of The Woman Who Rode the Wind, a novel about early flight.
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