Should i get collision coverage

Computing the math for whether to drop collision and comprehensive insurance means assessing the value of your vehicle, and not the way you see it, but rather the way the insurer sees it. Car owners also need to weigh, in advance, the potential insurance payout of any collision or comprehensive claim.

Both of these coverage types have deductibles, which reduce the amount of any insurance claims check. Poe compares this to health insurance. By having a low deductible, the car owner is more likely to file claims with the insurer for a couple of parking lot dents that they could fix at their own expense or simply ignore. The standard rule of thumb used to be that car owners should drop collision and comprehensive insurance when the car was five or six years old, or when the mileage reached the , mark.

Plenty of websites weigh in on this. But now it depends on the value of the car and its replacement parts. An expensive vehicle, like a Mercedes, may be worth the cost of collision and comprehensive coverage for several more years than a Nissan Sentra.

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. It covers incidents involving your window glass. Most insurers sell comprehensive and collision insurance together as a package deal.

There are some times when you might think about no longer carrying this type of insurance. You can afford to pay costs out of pocket for any damage that should occur to the car, or even to replace it if you must.

You might be driving an older car and paying more for insurance each year than your car is worth. You think it's at low risk of being damaged. You may be able to cancel collision insurance and keep comprehensive insurance in case the garage catches fire. Your car could be so old or already so damaged that collision insurance might not be available to you. Think about raising your deductible instead before dropping collision. You would only use it in extreme cases.

Nevada Division of Insurance. Texas Department of Insurance. Accessed June 9, Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance.

Develop and improve products. List of Partners vendors. To gain coverage for repairing or replacing your vehicle in the event of an accident, start your free collision car insurance quote today.

Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling.

Such terms and availability may vary by state and exclusions may apply. Clipboard-flat Claims Envelopes-flat Pay a bill. All insurance products ». For your ride. Life Pet Dental Umbrella Identity theft. Accident medical Specialty liability Travel Wedding. All financial goals ». Investing insights. In cases where there is a hit-and-run, you would be covered under the collision coverage portion of your insurance — if you had collision coverage. As mentioned above, even if you are not at-fault , without collision coverage you would not be covered during a hit-and-run.

So, what happens if your car encounters damages that are not collision-related? This is where comprehensive coverage comes into play. Comprehensive coverage is also a type of insurance. It covers damages to your car that are not caused by a collision. Comprehensive coverage protects your car against:. Just like collision coverage, if you finance or lease a vehicle, then it is mandatory to have comprehensive coverage.

Before deciding if it is beneficial to have comprehensive coverage or not, factor in all your costs maximum payout, deductible, replacement cost , etc. Just because you drive a used car, does not mean that your insurance premium will automatically be reduced.