How long keep collision insurance

Is this article helpful? Still have questions? Contact us for answers. 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.

Do you have to have comprehensive and collision coverage on a financed car? Home Answers When should you drop comprehensive and collision coverage? Who We Are Get to know our culture and people. Investors Learn about our goals and how we achieve them. Corporate Responsibility Discover how we live our core values within our communities. Local Agents Find an agent near you. Progressive Art Collection Tour our art installations, collection highlights, and more. Careers Learn about our teams, apply for a job, and more.

Resources Progressive resources Find answers to your insurance questions, insights into current trends, and tools for navigating life in our resource center. 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. At the same time, if your car is worth less than the minimum deductible amount, or is cheap to fix, you might not want to take out a comprehensive cover.

What are your guidelines when considering whether or not to remove collision coverage? Leave your answers in the comments section below. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Notify me of follow-up comments by email. Notify me of new posts by email. This site uses Akismet to reduce spam.

Learn how your comment data is processed. You could still opt to fix your car, in which case your insurer would subtract its salvage value from your payout.

The car would also be recorded as salvaged on the title. Raising your deductible can lower the cost of comprehensive insurance. Just be sure you can come up with that amount out of pocket in an emergency. Comprehensive insurance is one of several types of coverage often referred to as full coverage insurance when purchased together. Also included in full coverage insurance are liability and collision insurance, plus uninsured motorist coverage in some states.

The average annual cost of comprehensive coverage in the U. This can be because your auto lender requires both, or your insurer requires one to purchase the other. See info on both types of coverage in our comprehensive versus collision insurance explainer. Comprehensive coverage becomes less useful as your car's value depreciates over time. To figure out when to drop comprehensive coverage, first consider the actual cash value of your car and your deductible.

If you could easily pay this amount without needing to file an insurance claim, you could cut the coverage. Take that amount and subtract the cost of your comprehensive coverage for the policy period, usually six months. A small positive number , comprehensive coverage can still benefit you, but a potential claim check would be small. Even if you decide comprehensive insurance is worth it for now, revisit this math as your car ages and you get new car insurance quotes.

Not everyone has a choice about whether to get comprehensive coverage. But if you could drop the coverage, consider the value of your car plus these pros and cons:.