Comprehensive excluding collision means you are purchasing comprehensive insurance without getting collision insurance, even though they are typically bought together. Not every insurer allows this, and there are usually requirements you must meet before you can purchase comprehensive insurance only.
Key Things to Know About Comprehensive Excluding Collision
You should consider purchasing comprehensive insurance by itself if you cannot afford to buy collision insurance as well, since comprehensive is inexpensive and covers things outside of your control.
Comprehensive-only insurance is most common for people with vehicles in long-term storage that are not being driven. Some insurance companies will only provide coverage if your vehicle has already been stored for at least 30 days.
Comprehensive and collision insurance only cover your vehicle repairs after an accident you cause or after an accident caused by something outside of your control, like natural disasters or vandalism. Full coverage policies will also cover those situations, in addition to covering you and your passengers if you are injured in an accident and other drivers’ injuries and property damage if you cause an accident.
Yes, you need collision insurance if your car is leased or financed. Collision insurance is not required by any state laws, but most lessors and lenders require drivers to have it until the car is paid off. Even if you’re not required to have collision insurance, you should still purchase it if you cannot afford to pay for damage to your vehicle after an accident.… read full answer
Why You Need Collision Insurance
Collision insurance pays to repair or replace your car after an accident, regardless of who is at fault. If you cause an accident, collision coverage is the only way to have your repair costs covered by insurance. Even if you are not at fault for an accident, you can file a collision claim to pay for your repairs while you wait for a final determination of fault. Your insurance company will then recoup your costs from the other driver’s liability insurance.
Factors to Consider When Deciding if You Need Collision Insurance
Price of coverage
Likelihood of an at-fault accident
Cost of repairs
When to Consider Dropping Collision Insurance
A general rule of thumb is that if your collision insurance premium is more than 10% of your car’s value, you can consider dropping the coverage. However, this is just a general guideline. If you can’t afford to pay out of pocket to repair or replace your car after an accident, then you should continue to carry collision insurance. You should also keep it if your car is particularly valuable or you live in a high-traffic area where you are more likely to get into an accident.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.