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.

Tony Bennett

Tony Bennett

Tony Benett makes his living in the insurance industry by teaching and consulting. He is also recognized by the legal profession as an expert on insurance coverages. His insurance experience includes having worked at the company level, owned an independent general agency and having worked for an insurance association. He has received various certificates over the past few years and helps his clients and readers by giving them a realistic outlook on what they can expect to achieve within their set targets. At Insurance Noon, he is known for his in-depth analysis and attention to details with accuracy. He has been published as one of the most referred agents by his peers in the insurance community. Tony loves the outdoors and most sport events. His passion other than providing excellent advice is playing golf.