Should You Drop Collision And Comprehensive Coverage?
Last Updated on December 4, 2025
If your car insurance premiums are getting too expensive, you may be wondering whether it’s time to drop comprehensive and collision coverage. For many drivers, liability coverage alone is enough—but not always. Some situations make dropping these coverages risky or even impossible. Below, we break down what collision and comprehensive insurance really cover, when you need them, and when it makes sense to remove them to lower your premiums.
Key Takeaways
- Collision covers crash damage; comprehensive covers theft, vandalism, weather, and more.
- You may drop these coverages if your car is older, low-value, or inexpensive to repair.
- Leased and financed vehicles almost always require both comprehensive and collision.
- Keep these coverages if you live in a high-risk area or can’t afford major repairs out of pocket.
What Exactly Is Collision Coverage?
Every driver must carry liability insurance, which pays for the other driver’s repairs and medical bills if you cause an accident. However, liability coverage does not cover your own vehicle.
Collision coverage pays to repair or replace your car if it’s damaged in a crash—regardless of who caused it. Collision applies when:
- You hit another car
- You hit an object (guardrail, pole, tree, etc.)
- Another driver hits you and is uninsured or underinsured
Without collision coverage, you must pay out of pocket for your own vehicle repairs if you’re at fault. Because collisions are one of the most common causes of vehicle damage, dropping this coverage can leave you financially vulnerable.
What Exactly Is Comprehensive Coverage?
Comprehensive coverage protects your vehicle from damage that isn’t caused by a crash. It covers events that happen when your car is parked or situations beyond your control, including:
- Falling tree branches
- Vandalism
- Theft
- Weather damage (hail, hurricanes, tornadoes, blizzards)
- Fire or explosion
- Animal collisions
Comprehensive does not cover crashes where your vehicle hits another vehicle or object—that’s collision. But combined, the two cover most types of physical damage your car could experience.
Other optional coverages include uninsured motorist insurance, which protects you if someone without proper insurance hits you.
When It Makes Sense to Keep (or Add) Comprehensive & Collision
In some cases, dropping these coverages is a bad idea. You may want to keep comprehensive and collision if:
- You have a teen or inexperienced driver using your vehicle
- You live in an area prone to severe weather
- Your neighborhood has high rates of theft or vandalism
- Your vehicle is newer or expensive to repair
For many drivers, the peace of mind and financial protection are worth the additional premium.
What About Leased and Financed Vehicles?
If you have a leased car or a financed vehicle, you almost certainly cannot drop collision or comprehensive coverage. Lenders and leasing companies require both coverages—often with higher liability limits—because the car is technically their asset until you pay it off.
Even if premiums feel high, these coverages are required to protect the lender from loss if the vehicle is damaged.
FAQ About Dropping Coverage
Final Word
Whether you should drop these coverages comes down to the value of your car, your financial cushion, and your risk tolerance. Here are some general guidelines:
- If your car is old or low-value, dropping collision or comprehensive may save more than they’re worth.
- If your deductible is higher than your car’s value, the coverage may not make financial sense.
- If you can afford to replace or repair your car out of pocket, you may not need full coverage.
- If you live in a high-risk area, dropping coverage may leave you exposed to expensive losses.
Full coverage can feel expensive, but you’ll be grateful you kept it if a tree falls on your car or you get into a crash. On the other hand, if you drive an older vehicle, the extra premiums might not be justifiable.
Ultimately, the decision depends on your vehicle’s value, your financial situation, and how much risk you’re willing to take.
