When Should You Drop Collision Coverage On Your Car?
Collision and comprehensive coverage on your car will be expensive, so do you need it?
If you own a car, you legally must buy car insurance because you’re not allowed to drive a yard without having the car insured. Different states have different requirements and rates for auto insurance; you have to see which ones are relevant to you.
Auto insurance is the amount of financial destruction covered by your insurance company in case of a road accident or loss to the car. The cost of repair and damage, liability cost if you harm someone else’s car or property, medical bills, collision, etc. are all paid by the insurance company.
Types of Auto Insurance Coverage
While opting for auto insurance coverage, the insurance company will ask you if you want full coverage or partial coverage. Full coverage is, of course, costly because it involves all the types below.
Collision Coverage: If your car collides with a fence or tree, collision coverage will cover your car’s cost up to its actual value. This is an optional feature added to the auto insurance but could be mandatory to purchase if your car is on lease or loan.
Comprehensive: This is also referred to as paying the car’s full cost in case of theft or vandalism. Other than collision, whatever damage that your car incurs is covered under comprehensive.
Liability: This includes bodily injury and property damage that you cause to other people. Anyone involved in an accident with you gets injured, their hospital bills will be covered, and if you wreck their fence or property, you will also pay the damages.
Personal injury protection: This type helps pay for your bills and hospital visits if you get into an accident.
As amazing as it sounds to have full coverage on your auto insurance policy, you can’t ignore the fact that it will be more expensive. Expensive premiums may shake up your monthly budget, so make sure you opt for a coverage that you can afford.
What is Comprehensive and Collision Coverage?
As described above, comprehensive and collision coverage types are optional for people to add in their policy. Comprehensive covers everything other than collisions like theft or your car affected by terrorism, and collision covers if your car is damaged by hitting into stationary objects.
Comprehensive and Collision Rates
Different car types have different rates, and according to ValuePenguin, this is what you shall expect based on your car type.
| Car Type | Basic Liability | With Comprehensive | With Comprehensive and Collision | Yearly Rate Difference |
| Ford F-150 | $1,704 | $1,893 | $3,462 | $1,758 |
| Chevrolet Silverado | $1,986 | $2,170 | $4,866 | $2,880 |
| Toyota Camry | $1,986 | $2,171 | $4,110 | $2,124 |
| Honda Accord | $1,644 | $1,812 | $4,116 | $2,472 |
| Ram 1500 | $1,716 | $1,904 | $3,990 | $2,274 |
| Honda Civic | $1,662 | $1,793 | $3,822 | $2,160 |
| Nissan Altima | $1,704 | $1,881 | $3,924 | $2,220 |
| Toyota Corolla | $1,800 | $1,953 | $3,828 | $2,028 |
| Honda CR-V | $1,596 | $1,742 | $3,264 | $1,668 |
| Ford Escape | $1,668 | $1,786 | $3,408 | $1,740 |
Looking at these rates, you’re probably wondering whether you actually need full coverage or not. And if you have it already, should you drop it?
Collision and Comprehensive Rates according to States
Here is a breakdown of the cost in different states.
| State | Comprehensive | Collision | Total |
| Alaska | $139 | $629 | $768 |
| Alabama | $155 | $563 | $718 |
| Arkansas | $242 | $573 | $815 |
| Arizona | $159 | $487 | $646 |
| California | $151 | $997 | $1,148 |
| Colorado | $239 | $511 | $750 |
| Connecticut | $117 | $686 | $803 |
| DC | $164 | $647 | $810 |
| Delaware | $101 | $524 | $625 |
| Florida | $159 | $489 | $648 |
| Georgia | $158 | $543 | $701 |
| Hawaii | $98 | $559 | $658 |
| Iowa | $246 | $391 | $636 |
| Idaho | $131 | $430 | $561 |
| Illinois | $116 | $479 | $595 |
| Indiana | $146 | $513 | $659 |
| Kansas | $423 | $468 | $891 |
| Kentucky | $286 | $573 | $859 |
| Louisiana | $251 | $670 | $922 |
| Massachusetts | $164 | $555 | $719 |
| Maryland | $135 | $580 | $715 |
| Maine | $80 | $408 | $488 |
| Michigan | $243 | $921 | $1,164 |
| Minnesota | $231 | $391 | $623 |
| Missouri | $298 | $473 | $771 |
| Mississippi | $221 | $492 | $712 |
| Montana | $331 | $540 | $871 |
| North Carolina | $116 | $416 | $531 |
| North Dakota | $333 | $431 | $764 |
| Nebraska | $343 | $408 | $750 |
| New Hampshire | $88 | $478 | $565 |
| New Jersey | $102 | $450 | $552 |
| New Mexico | $203 | $456 | $659 |
| Nevada | $152 | $596 | $748 |
| New York | $145 | $700 | $844 |
| Ohio | $106 | $403 | $509 |
| Oklahoma | $372 | $541 | $914 |
| Oregon | $100 | $443 | $543 |
| Pennsylvania | $146 | $618 | $764 |
| Rhode Island | $120 | $728 | $847 |
| South Carolina | $310 | $609 | $918 |
| South Dakota | $461 | $417 | $878 |
| Tennessee | $142 | $505 | $647 |
| Texas | $228 | $529 | $757 |
| Utah | $106 | $417 | $523 |
| Virginia | $100 | $381 | $481 |
| Vermont | $138 | $466 | $604 |
| Washington | $87 | $383 | $470 |
| Wisconsin | $212 | $461 | $673 |
| West Virginia | $175 | $463 | $638 |
| Wyoming | $346 | $653 | $1,000 |
| National average | $192 | $526 | $723 |
The total can spike up if you’re in a state where the charges are high; that is when you need to think over whether you want full coverage or not.
When should you drop Full Coverage on a Car?
Having comprehensive and collision coverage on the car is optional, but you should have it in three cases:
- If your car is on lease
- If it is not more than ten years old
- If the car is worth more than $3,000
Do you need full coverage?
Think of all the possible answers to questions that will help you determine whether you need it or now and when it is time to drop them.
If your car has a lot of mileage and you have to travel long distances every day, you’re at a higher risk of road accidents. That is when you could think about collision and comprehensive coverage. But if you own a car and still use mass transit for work, you should drop full coverage.
If you’re a careful driver and you’re the only one who drives, the chances are that you wouldn’t crash into a fence in the middle of the day. People with clean driving records, especially those who never drive under the influence, should consider dropping full coverage options and saving money.
But if you’ve leased the car and you have an outstanding loan, you shouldn’t think of dropping full coverage because if there is a mishap, you won’t have to pay for loss or damage out of your pocket.
Or, you should drop collision coverage if it reaches far too out of your budget. Whatever you decide will eventually reflect on your needs and whether you require full coverage or not.
Auto insurance is necessary for many states, but it is expensive in some too. If you don’t need full coverage, you should go for partial coverage, which covers personal injury and liability protection. But if your car’s loan company requires you to have collision and comprehensive, you wouldn’t be able to escape it no matter the cost. Whatever option you choose, make sure you’re paying your premiums on time to keep the policy in force.
