When should you drop comprehensive and collision coverage?

When should you drop collision coverage?

Dropping collision coverage may make sense when your car's value is low relative to your deductible. For example, if your car is worth $2,500 and you have a $1,500 deductible, your insurer could pay out as little as $1,000 on a collision claim. Compare your car's current market value against your deductible to decide whether the coverage is still worth the cost.

When should you drop comprehensive coverage?

Comprehensive coverage is typically less expensive than collision coverage, but the same value-versus-deductible idea applies. If your vehicle is worth less than a few thousand dollars, it may not be worth carrying, especially if your deductible is $1,000 or more.

Do I need comprehensive insurance on an older car?

Not necessarily, though age alone isn't the deciding factor. If you've thought about your car's value and you're still unsure, consider the following questions:

• Is your car paid off? If your vehicle is leased or financed, you may be required to carry comprehensive coverage by your lender to protect their investment.
• How common are covered events in your area? Comprehensive coverage protects you from events outside your control like natural disasters or collisions with animals. These risks vary from one area to another.
• Is your car a collectible? Antique cars often maintain or increase in value, which may change whether dropping comprehensive makes sense.

When does it make sense to keep comprehensive and collision?

There are situations where dropping these coverages could leave you with a significant out-of-pocket expense:

• You couldn't replace your car out of pocket: Even if the value-versus-deductible math is close, consider what it would cost to replace your vehicle if it were totaled or stolen. If you'd need to take out a loan or go without a car, keeping coverage may be worth the premium.
• Your deductible is low: The lower your deductible, the more your insurer covers on a claim, making comprehensive and collision more valuable. You may lower your premium on an older car by raising your deductible rather than dropping coverage entirely.

Can you drop collision but keep comprehensive or vice versa?

Both comprehensive and collision coverage are optional in every state. You can drop both while keeping the basic liability requirements if you don't have a car loan or lease. Because they're separate coverages, you may be able to drop one while keeping the other, depending on the insurer.

Keep in mind that if your lender requires both, you won't have the option to drop one individually until the vehicle is paid off.

What are the risks of dropping comprehensive and collision?

The main risk is that you pay for damage out of pocket. Specifically:

• Without collision coverage, you're responsible for repair or replacement costs to your own vehicle after an at-fault accident.
• Without comprehensive, you're not covered for damage caused by events outside of your control, such as theft, vandalism, hitting an animal, fire, or severe weather, regardless of fault.
• If your car is declared a total loss with no applicable coverage, you lose the vehicle with no payout.

How to drop comprehensive or collision coverage

Comprehensive and collision coverages are optional if you don't have a car loan or lease. Here's how to remove them from your policy.

1. Confirm your car is paid off: If your vehicle is financed or leased, verify that no lender requirement applies before removing coverage.
2. Contact your insurer: Log in to add or remove coverages or call us anytime and a Progressive representative will assist you.
3. Review your updated premium: Ask for a revised quote so you know exactly what you'll save and what you're giving up.

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

If you finance or lease your vehicle, your lender or lease company will typically require you to carry comprehensive and collision coverage. Find out what coverage your lender may require on a leased vehicle.