Car owners often ask do I need collision insurance? Under normal circumstances, collision coverage is a must when your automobile still has some value. And yet sometimes you may be justified to drop it, as it may be waste of money. Vehicle insurers can be flexible in terms of coverage. You may be able to pick and choose what to include or drop from your policy. For example, you may be able to buy auto insurance comprehensive coverage without collision or drop collision coverage later? You will hopefully have a good idea as to when to drop collision insurance after reading this post.
Generally, automobile insurance collision and comprehensive coverage would be sold together. They are almost inseparable. However, there are circumstances that are accepted by some insurance companies and they sell you comprehensive coverage alone or let you drop collision insurance at a later stage. But insurers don’t sell collision coverage alone. This would be too much in terms of picking and choosing the risks to be insured.
– When to Drop Collision Coverage and Keep Comprehensive?
If your car is parked at a garage and not being driven you can buy comprehensive coverage from some insurance companies. Read how much insurance do I need for a car I don’t drive? You are right to ask do I need collision insurance for a car that is not being driven and not on the public roads because there is hardly any chance of a collision or liability claim. However, you would want to insure it for possible fire, theft and buildings collapsing on it. In that case, you can drop collision insurance and just keep comprehensive coverage. You can also drop liability coverage. Dropping collision insurance should save you money because the risks are much lower when a vehicle isn’t being driven.
One distinction you have to know is that you probably have to keep your liability car insurance if the vehicle is kept on public roads because it can still cause damages to others even it isn’t driven. Your local DMV office would want to make sure that your automobile is either taken off the road completely or insured.
Comprehensive coverage alone is a good solution for collectible automobiles which are kept in the garage. It should be noted that few auto insurers don’t offer standalone comprehensive coverage. You need to find the one that does. You may be able to drop liability and collision on your policy when you decide to store your vehicle for a while. Usually, they only allow 30 days minimum storage car insurance. Also, you must buy both collision and liability covers as well if you ever take them out on the roads.
– When to Drop Collision and Comprehensive Coverage?
You can drop both collision and comprehensive coverage on an automobile that has lost its value to be worth insuring. Usually, owners of older cars drop collision and comprehensive coverage at some point. General view is that when a car’s value drops below $4,000 you may be able to save on premium by dropping collision and comprehensive coverage.
There may be other practical solutions for people who often store their vehicles for long periods of time. For example, buying mileage based or pay as you go insurance policies may be more practical than each time making changes to your policy. With such policies you would only pay for the miles you drive. If you don’t drive much your premium is adjusted accordingly so that you can save.
If you search and manage to buy cheap auto insurance online you may not be pressured to drop coverage even for a short period since your premium doesn’t put pressure on your budget. You can save money on car insurance in several ways but shopping for the best quotes is the easiest one and it can be the fastest if you use the Internet.