Every driver wants to be able to repair their vehicle damage after a car accident. With collision or comprehensive auto insurance, you can often do so with less hassle. Still, times arise in which you might not think you need this coverage. However, tread lightly on this thought. When might you drop coverage, and when should you keep it?
What are Collision and Comprehensive Insurance?
These types of coverage fall under an umbrella called physical damage protection. Most drivers need both collision and comprehensive coverage because they insure you against different mishaps.
- Collision coverage pays for damage your car sustains in a wreck.
- Comprehensive insurance pays for other damage, specifically non-accident mishaps. It might cover damage resulting from theft, vandalism, fire or weather events.
Based on the type of damage and your unique coverage, you can often make a claim on one of these policy elements. How much it will pay will depend on factors like your deductible, coverage limits and the value of your own car.
When do you have to carry coverage?
Most states don’t require drivers to carry collision and comprehensive insurance. Yet, that doesn’t always mean you can go without protection.
If you have a loan or lease on your vehicle, you might have to carry this protection. That’s because you still owe your bank or dealer money on the note. Thus, vehicle damage might affect more than just you and your car. Generally, you must carry protection until you pay off the vehicle.
Can you drop coverage later?
After you pay your loan, you might think about dropping collision and comprehensive. Often, you have the option to do so.
However, just because you have the option to doesn’t mean you should drop coverage. Without collision and comprehensive coverage, you must pay for all vehicle damage. You should therefore think carefully whether you can afford such losses. Remember, even if you don’t have a vehicle that is worth a lot of money, repairs still cost. So do new parts. Thus, you can still enjoy coverage.
Still, if you have a particularly old vehicle, you might be able to drop this coverage. Following a loss, the better financial idea might be to get a new car rather than have the old one repaired. Even so, if you want to keep your baby running, it’s a good idea to keep collision and comprehensive coverage. That way, you’ll always have a support system behind you.
Talk to your insurance agent today at 877-400-0500. In most cases, you’ll find it very responsible and affordable to keep your vehicle fully covered.