There's no need to cancel comprehensive coverage if you prefer to keep it. However, if you're uncertain about the benefits, it's wise to review your policy when the amount you pay for coverage (and your deductible) is close to the value of your car. You should drop full coverage car insurance when the cost of the insurance is equal to or greater than the potential payment, in the event of a covered event. It's worth noting that as the value of your vehicle decreases, the amount you pay for comprehensive coverage will generally decrease as well.
Similarly, a driver who uses their car infrequently could risk losing full coverage, since they are statistically less likely to damage their vehicle. You won't be able to cancel collision coverage or comprehensive coverage if the car is leased or until your loan is paid off. If additional coverages, such as collision insurance and comprehensive insurance, cost you more than 10% of the value of your car per year, you may want to remove them from your insurance policy to save money. Instead, choose a combination of coverages that you think is sufficient to manage all aspects of a car collision.
However, if you have an old vehicle, you may pay more than it's worth for collision insurance coverage. While there is no real type of policy known as “full-coverage auto insurance,” the term generally refers to an auto insurance policy that includes liability, collision, and comprehensive insurance. If you can't pay your car insurance bill, talk to your insurance agent before canceling any type of coverage. Keep in mind that if you cancel your collision or comprehensive insurance, you won't be covered for certain types of problems.
The financial risk that the insurance company assumes in providing coverage decreases, and this means that they charge a smaller premium for that coverage. It's worth taking out full-coverage insurance if your car is worth more than the combined cost of a full-coverage policy and a deductible, or if you can't afford to replace your car without it. If you cause an accident, collision coverage is the only way for insurance to cover your repair costs. An expensive vehicle, such as a Mercedes, can be worth the cost of the collision and comprehensive coverage for several years longer than a Nissan Sentra.
If you're considering dropping comprehensive coverage on your car, it's important to weigh all of your options carefully. You should consider factors such as the value of your car and how often you use it before making a decision. It's also important to research different types of policies and compare rates from different insurers before making a decision. Get Forbes Advisor ratings on the best insurance companies and useful information on how to find the best travel, auto, home, health, life, pet and small business coverage that fits your needs.
