Auto Insurance
Liability-Only vs. Full Coverage: When to Drop Collision
A simple rule: when your car's value drops below 10× the annual collision + comprehensive premium, it's time to reconsider full coverage.
Full coverage isn't a forever decision. As your car depreciates, the math eventually flips in favor of liability-only.
The 10× rule
If your collision + comprehensive premium is $800/year and your car is worth $7,000, you're paying $800 to insure a $6,500 net payout (after the deductible). Below ~10×, drop the coverage.
What you keep
Liability-only still covers bodily injury and property damage you cause to others. Your own vehicle becomes your problem in an at-fault accident.
Frequently asked questions
Can I drop collision but keep comprehensive?
Yes. Comprehensive covers theft, hail, and animal strikes — often cheap enough to keep even on older cars in high-risk areas.
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