There is a case to be made for getting just comprehensive and not collision insurance, even if your car is not valuable. Comprehensive covers you for a lot more perils than does collision--including, most importantly, against theft. Regardless of the value of your car, having it stolen is a major inconvenience. Even if your car is worth only $2,000 at the time of the theft, and your insurer gives you $1,500, that sum would go a long way in buying yourself a new vehicle. As we discuss in more detail below, comprehensive insurance generally costs no more than $200 per year, so a $1,500 reimbursement would make the coverage valuable.
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Financial experts often say it’s smart to drop collision when you drive an old car, then put your car insurance savings in a fund earmarked for emergency repairs or buying a new car. However, when you’re trying to decide when to drop collision coverage, the answer really comes down to your personal finances. “If you’re not absolutely sure that you could deal with paying for repairs or completely replacing your vehicle at a moment’s notice, or else going without a vehicle until you could save for a replacement, it’s best to err on the side of caution and pay the extra premium for collision coverage,” The Simple Dollar advises.
Dallas is one of the most-expensive cities for car insurance in Texas, and drivers typically pay over $1,000/year (roughly $80/month) for their coverage. Your exact rate will vary, however, based on factors like your driving record, the value of your car and your previous claims history. Let our agents help you tailor your coverage limits appropriately.
Let's use the aftermath of a major storm to illustrate the differences between collision and comprehensive. Within that storm, let's consider two hypothetical events: First, a heavy telephone pole was blown down and fell on your truck, or second, you swerved to avoid a falling tree and wound up crashing into a guardrail. In the first event, you couldn't control when or why a tree fell on your car. This kind of accident would get reimbursed under your comprehensive policy. In the second situation, you were driving the car and ultimately swerved into the guardrail. This makes it a collision, and collision insurance pays for the damages.
The key difference in collision vs. comprehensive coverage is that, to a certain extent, the element of the car driver's control. As we have stated before, collision insurance will typically cover events within a motorist's control, or when another vehicle collides with your car. Comprehensive coverage generally falls under "acts of God or nature," that are typically out of your control when driving. These can include such events as a spooked deer, a heavy hailstorm, or a carjacking.
If your car is worth more than $3,000 and/or is less than 10 years old, we'd also suggest both collision and comprehensive coverage, too. Our estimates suggest drivers can buy comprehensive and collision insurance for an average of $600 to $700 per year (however, the cost may be higher for some cars), so you would spend $3,000 to $3,500 in premiums over five years. If your car is currently worth less than $3,000, you will have spent more on insurance than your car is worth. You can obtain the estimated value of your car from sites like Kelley Blue Book and Edmunds. Once you have both the value and a quote for coverage, you can determine whether collision insurance will be worth it.
If your car is worth more than $3,000 and/or is less than 10 years old, we'd also suggest both collision and comprehensive coverage, too. Our estimates suggest drivers can buy comprehensive and collision insurance for an average of $600 to $700 per year (however, the cost may be higher for some cars), so you would spend $3,000 to $3,500 in premiums over five years. If your car is currently worth less than $3,000, you will have spent more on insurance than your car is worth. You can obtain the estimated value of your car from sites like Kelley Blue Book and Edmunds. Once you have both the value and a quote for coverage, you can determine whether collision insurance will be worth it.
Collision insurance is a coverage that helps pay to repair or replace your car if it's damaged in an accident with another vehicle or object, such as a fence or a tree. If you're leasing or financing your car, collision coverage is typically required by the lender. If your car is paid off, collision is an optional coverage on your car insurance policy.
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