By Marcus Bell · Editor
Published · Updated
Answer in brief
Drop collision and comprehensive when the car is paid off, its actual cash value minus your deductible is small (a few thousand dollars), the two coverages cost 10% or more of its value per year, and you have savings to replace it. Many drivers drop collision first and keep comprehensive—which is cheap and covers theft and weather—for another year or two. Make the change at renewal or mid-term by endorsement; never by cancelling the policy, which creates a lapse.
The signals
- The loan is paid off (a lender requirement no longer applies).
- Actual cash value is under roughly $5,000–$6,000.
- Collision + comprehensive premium is 10% or more of that value per year.
- Value minus deductible is under about $3,000—the most you could ever collect.
- You could replace the car from savings without hardship.
Drop collision first, comprehensive later
Comprehensive is usually a quarter to a third of the cost of collision and covers the losses that happen to parked cars—theft, hail, flood, falling trees, animal strikes, glass. Keeping comprehensive alone on a $4,000–$8,000 car is a common and sensible middle step.
How to make the change
- Call or log in and remove the coverages by endorsement; the premium is pro-rated.
- Do not cancel and rebuy—that risks a lapse and a prior-insurance penalty.
- Confirm the new declarations page shows liability, UM and any required PIP/MedPay intact.
- Use the moment to compare: liability-only pricing differs between insurers too. See how to compare.
Entries in this guide
Specific questions answered in more depth.
Questions & answers
Should I drop collision or comprehensive first?
Collision—it costs more and covers only crashes. Comprehensive is cheap and covers theft and weather.
Will dropping full coverage raise my liability rate?
No. Liability pricing is independent of collision and comprehensive.
Can I drop collision mid-term?
Yes, by endorsement, with a pro-rated premium reduction.
Terms used in this guide
- Actual cash value (ACV)
- What your car was worth just before a loss—replacement cost minus depreciation. The basis for deciding whether collision is worth keeping.
- Deductible
- What you pay before collision or comprehensive pays. Liability coverages have no deductible.
- Endorsement
- A mid-term change to a policy, such as removing collision, with the premium adjusted pro-rata.
- Lapse
- A gap in coverage. Rated as a risk factor by most insurers; avoid by changing coverage rather than cancelling.
Sources and references
Legal figures on this page (minimum limits, filing periods, statutory benefits) are checked against the primary law or the state insurance regulator listed below. Links and figures last verified Nov 2026.
- Automobile financial responsibility limits by state — Insurance Information Institute (2023)Statistical dataCompulsory coverages and minimum liability limits by state (table dated December 2023 — several states have raised limits since; see statute entries).
- Facts + Statistics: Highway safety — Insurance Information InstituteStatistical dataCrash, injury and fatality trends used to explain why liability and injury coverages cost what they do.
- How much auto coverage do I need? — Insurance Information InstituteConsumer guidanceWhy state minimums are a floor; choosing liability limits that protect assets; when collision and comprehensive are worth keeping.
- Nine ways to lower your auto insurance costs — Insurance Information InstituteConsumer guidanceShop at least three quotes; raising a deductible from $200 to $500 can cut collision/comprehensive cost 15–30%, $1,000 can save 40%+; drop physical damage on cars worth under 10× the premium; bundling, low-mileage and good-student discounts.
- What is covered by a basic auto insurance policy? — Insurance Information InstituteConsumer guidanceDefines bodily injury and property damage liability, MedPay, PIP, uninsured/underinsured motorist, collision, comprehensive and glass coverage.
- Is it legal to drive without insurance? — Insurance Information InstituteConsumer guidanceEvery state requires drivers to demonstrate financial responsibility; in most states insurance is the mandatory way to do so.
- How to file an auto insurance claim — Insurance Information InstituteConsumer guidanceSteps after a crash: document the scene, notify the insurer promptly, understand the adjuster's role.
- What determines the price of an auto insurance policy? — Insurance Information InstituteConsumer guidanceRating factors: driving record, mileage, location, age, gender, vehicle, credit-based insurance score, coverage choices. Notes ZIP-code rating is prohibited in California and Michigan and gender rating is prohibited in seven states.
Practical guidance on this page is original editorial work. Cited sources support factual statements and do not endorse this site. Dollar ranges described as typical or illustrative are editorial estimates, not figures from these sources.
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