When to drop collision coverage

If your vehicle is paid off, there are only a few instances that justify dropping collision coverage:

Your vehicle's value is less than a few thousand dollars: If your car holds minimal value, collision coverage may not be worth carrying. This is especially true when a large deductible is involved. For instance, if your car is worth $2,000 and your policy has a deductible of $1,000, your car insurance is only able to pay out up to $1,000 on a collision claim.

Your vehicle isn't currently being driven: Collision coverage isn’t necessary if you never take the car out on the road. While your car is garaged or kept in storage, comprehensive coverage can protect your vehicle against theft, vandalism, fire, and weather related issues .

Your vehicle is insured on another policy: You won’t need collision coverage if your car is covered on a family member's existing policy that includes collision coverage. Keep in mind, your vehicle can only be insured on a family member’s policy if it’s kept overnight at their address.

When to drop comprehensive coverage

While comprehensive coverage is typically more affordable than collision coverage, there may be instances when it’s not worth carrying, including:

Your vehicle holds a low value: As with collision, consider dropping comprehensive coverage if your vehicle's market value is lower than a few thousand dollars. Figure in your deductible as well and the potential insurance payout may not be worth the price of the coverage.

You’re covered on another policy: If your family member insures your vehicle on their policy and comprehensive is an included coverage, there’s no sense in paying for it twice. Note that your car can only be covered on a family member’s policy if it’s garaged at their residence.

Do you have to have comprehensive and collision coverage on a financed car?

Lenders and lease companies want to protect their interest in your vehicle, so they typically require you to carry comprehensive and collision coverage.

Looking for more information about auto insurance? Our car insurance resource center has you covered.