Delaney Simchuk, Car Insurance Writer
@delaney_simchuk
No, you generally don’t need comprehensive and collision on an old car since they are both optional forms of insurance coverage. The only times you would need comprehensive and collision insurance on an old car are if your lender or lessor requires it.
It’s also recommended to have collision and comprehensive insurance if your annual premiums for the coverage are still less than 10% of your car’s value, or if you cannot afford to replace your car in the event that it’s totaled or stolen. But those scenarios are less likely with an old car.
When You Need Comprehensive and Collision Insurance on an Old Car
- You can’t afford to replace your car out of pocket. Comprehensive insurance and collision insurance pay up to the actual cash value of your vehicle if your car is damaged, stolen, or totaled. If your vehicle is older but still has a high cash value, it is worth keeping collision and comprehensive insurance.
- You still have a loan or lease on the car. While no states legally require comprehensive and collision coverage, lenders and lessors often require financed vehicles to have collision and comprehensive insurance.
- Your annual premium is less than 10% of your car’s value. If your comprehensive and collision premium is similar to the value of your car, paying for the coverage is probably not worthwhile. However, if your annual premium is less than 10% of your vehicle’s actual cash value, it may be worth having comprehensive and collision insurance because what you are paying to insure your car is still significantly less than what it would cost to fully replace your vehicle.
- You own a classic car. A classic car is generally a vehicle that is at least 10 years old, is in well-maintained condition, has some sort of historic interest, and does not get driven frequently. If you own a classic car, you should consider purchasing classic car insurance that includes comprehensive and collision coverage. The amount of coverage you get will be based on the value of your vehicle, which you and your insurer must agree upon.
To learn more, check out WalletHub’s guides to collision insurance and comprehensive insurance.
People also ask
Do I need to carry comprehensive insurance on an old car?
You don't need to carry comprehensive insurance on an old car, unless you have a financing contract that requires it. Comprehensive coverage becomes less valuable as your car depreciates, so you could drop it. A good way to find out if comprehensive coverage is worth it is to compare the value of your car with the cost of insurance and your deductible.
What insurance do I need for an old car?
You need liability insurance for an old car. If the car you own is old and has low market value, you can drop collision and comprehensive coverage on it, but liability coverage is a requirement in most states, regardless of the car's age.
Some states also require you have uninsured and underinsured motorist coverage, medical payments coverage and personal injury protection (PIP). It's best you check with your insurer to see if you need to...
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