Do I Need Comprehensive & Collision Insurance on an Old Car?

There are a few times in everyone’s life when they must debate between riding their vehicle out until it just can’t putter around anymore or becoming a proud owner of a brand new or new-to-you vehicle.

Sure, dropping comprehensive and collision coverage means you won’t have auto insurance if you’re ever at fault for an auto accident, but it also means you could be saving up to 50% on your premiums. So let’s see is it worth having full coverage on an old car or if you’re better off skipping it.

If you find yourself wondering should I get comprehensive insurance on an old car, there are a few things you’ll want to know before you make a decision. Depending on how old your car is and its make and model, maintaining the coverage type could be helpful or harmful.

Since comprehensive coverage protects your vehicle when it isn’t moving, and it’s much rarer that you’ll have to file a claim for comprehensive coverage, it can be the first auto coverage you drop. If you finance your vehicle, you’ll have to check with your lender before dropping it. However, if you drive an older car and you still owe money to your lender on it, you may be required to maintain full coverage until you pay off the loan.

If your older car is worth $3,000 and you feel comfortable withdrawing $3,000 from your bank account if you were at fault for an auto accident, it’s probably time to drop comprehensive and collision coverage.

Even if you don’t feel comfortable withdrawing $3,000, you must weigh your options. If your deductible is $1,000 per accident and full coverage auto insurance costs you $500 more per year than liability coverage, you’re already going to pay half of that $3,000 no matter what. If you drop comprehensive and collision coverage, you could be saving that money for a down payment on a newer vehicle when the time comes.

Collision insurance is the trickier coverage for older vehicles because it pays for damages sustained to your own vehicle if you’re at fault in an auto accident. If you still owe money on an auto loan, you’ll need to maintain collision coverage on your vehicle until the loan is paid in full.

However, if you’re one of the lucky ones who’s paid their vehicle off, there are many times when dropping collision insurance for older cars just makes sense. We’ll go back to the $3,000 example from earlier. If that scenario applies to you, it’s probably time to drop collision coverage. So, if you’re wondering should i have collision insurance on a 2007 car, for example, your answer is in its value and your financial standing.

If your older vehicle is still worth $5,000, you may be in the grey area for dropping coverage. Let’s say your car is still worth $5,000 and you have a $500 deductible. Now let’s say that full coverage only costs $300 more per year than liability. 

If you’re not comfortable shelling out $5,000 if your car was totaled, you may want to hold onto collision coverage for a few more years — or until your car depreciates to an amount you’re comfortable paying out of pocket.

If you’re wondering should you have full coverage on a 10-year-old car, including both collision and comprehensive coverages, you’ll find your answer by looking at the value of your vehicle’s make and model. If you own a valuable car, you’ll likely want to maintain coverage, regardless of its age.

Since older cars, typically 10 years and older, aren’t worth as much as those newer vehicles on the road due to depreciation, dropping collision coverage is a good idea if your vehicle’s value drops to a level you feel comfortable paying out of pocket if it were totaled.

However, your car’s age has less to do with your insurance costs than its make and model. For instance, if you’re driving a 10-year-old luxury car that’s still worth $10,000 or more, you’ll pay more for auto insurance than someone with a 10-year-old car that’s worth $3,000. Additionally, you’ll need to pay more out of pocket if your luxury car is totaled than someone with a less valuable vehicle would.

While shopping for car insurance for a 15-year-old car, you’ll want to know its value so you can determine if full coverage insurance is worth it. If your 15-year-old car is becoming a classic, you may want to maintain full coverage. However, if it’s becoming a lemon, you may opt for minimal coverage by dropping collision and comprehensive coverages. 

Yes, insurance for cars older than 20 years is typically cheaper because you may not need comprehensive and collision coverage, and your vehicle’s value will likely be less than a newer car. If a car is worth less money, that means your insurance company will have to pay less if you’re involved in an accident where your vehicle sustains major or total damage.

However, if you own a car that maintains its value or perhaps increases in value as it gets older, you may see the opposite effect on your premiums. If this is the case for you, you’ll probably want to keep comprehensive and collision coverages because you’d likely have to shell out a lot of money out-of-pocket if you total your vehicle.

Additionally, if you drive a car that’s highly coveted by thieves, like a Honda Civic or Accord, you may pay more for insurance on older models than you would a different car brand, new or old. That’s because your vehicle has a statistically higher chance of being stolen.

Yes, you can get full coverage on an old car. However, you may not want it. Full coverage looks different in each state, depending on the car insurance laws where you live. One thing’s for certain, though; if your policy contains collision and comprehensive coverages, it’s a full coverage policy. 

Comprehensive coverage is just a small part of full coverage auto insurance. Comprehensive coverage helps pay for damage when your vehicle is involved in a non-moving accident, such as a tree falling on it due to a heavy wind storm or hail smashing the roof, windshield, and hood of your vehicle.

Collision coverage is another, arguably larger, part of a full coverage policy. Collision coverage helps protect you and your vehicle when you’re in an accident. So, if you were to cause an accident while driving your old car, if you have collision coverage, it would help you cover your car’s repair fees up to your coverage limits. 

While you can have as much or as little insurance coverage as is legally allowed and allowed by your lender if you finance your car, there’s still the question of whether you should maintain full coverage, given the choice. 

You should get full coverage on an old car if that’s what helps you feel comfortable behind the wheel and with your finances. However, if you aren’t otherwise required to maintain a full coverage policy and feel comfortable on the road without one, you may consider skipping it. 

A full coverage policy for an old car really only makes sense if its value exceeds what you feel comfortable spending on a replacement. If its value doesn’t exceed the amount you’re comfortable spending on a replacement, you’d likely be better off without a full coverage policy. 

If you’re unsure about getting full coverage on an old car, gathering and comparing quotes may help you make a decision. You can gather quotes for liability-only policies and full coverage policies for your older car, see the price difference, and make the best choice for your needs. 

Lucky for you, you can get a fast and easy quote with Clovered to see how much you could save! If you have any questions, you can email one of our agents at [email protected] or give us a call at 833-255-4117.