Do I Need Comprehensive Insurance on an Old Car: What to Know

If your old car is worth less than $3,000, you might not need comprehensive insurance, as the cost of repairs could exceed the car's value. This is a key consideration when deciding whether to carry comprehensive coverage.

Comprehensive insurance covers damage to your car from events like theft, vandalism, and natural disasters, but it's not required by law in most states. If you can't afford to replace your old car, dropping comprehensive coverage might be a good option.

However, if your old car is still in good condition and you're attached to it, comprehensive insurance might be worth considering, especially if you live in an area prone to natural disasters. You can also consider raising your deductible to lower your premiums.

Ultimately, the decision to carry comprehensive insurance on an old car depends on your individual circumstances and priorities.

If your car is old and still owes money on a loan, you'll likely need to maintain comprehensive coverage until the loan is paid off. You can consider dropping comprehensive coverage if your car is worth less than the deductible amount. If your car is worth $3,000 and you're comfortable paying $3,000 out of pocket in case of an accident, it's probably time to drop comprehensive coverage.

However, if your car is still worth a significant amount, you may want to hold onto comprehensive coverage. For example, if your car is worth $5,000 and you have a $500 deductible, it might be worth keeping comprehensive coverage to avoid paying out of pocket in case of an accident.

It's also worth noting that comprehensive coverage is usually rarer to file a claim for, so you might not need it as much. But, if your car is still valuable, it's better to be safe than sorry. You can weigh your options by comparing the cost of full coverage to the potential out-of-pocket expenses if you're involved in an accident. If the cost of full coverage is more than what you're comfortable paying out of pocket, it might be time to drop comprehensive coverage.

Older cars are typically cheaper to insure because they lose value as they age, making comprehensive and collision insurance payouts lower. The cost of insurance premiums can be more than the value of the car, making it a bad investment to get comprehensive coverage.

You only need to maintain comprehensive and collision coverage if you still owe money on the loan or if the car's value exceeds what you feel comfortable spending on a replacement. If you've paid off the loan and the car's value is low, it's likely not worth the extra cost of full coverage.

Here are some general guidelines to consider when deciding on old car insurance:

Keep in mind that these are general guidelines and the cost of insurance will vary depending on your location, driving history, and other factors.

If you're wondering whether to keep collision insurance on an old car, the answer often depends on its value and your financial situation. If you still owe money on the car, you'll likely need to maintain collision coverage until the loan is paid off.

If your car is paid off and you're considering dropping collision insurance, think about its value. If it's still worth a significant amount, such as $5,000, you might want to hold onto the coverage, especially if you're not comfortable paying out of pocket for repairs.

The cost of collision insurance can be a deciding factor, too. If it's only $300 more per year than liability insurance, it might be worth keeping, especially if your deductible is $500. This way, you'll be protected against costly repairs if your car is totaled.

For older cars, full coverage often isn't a good use of money. After an accident, you'll likely get the actual cash value of the vehicle, which might not be worth the extra cost of insurance.

Minimum Liability Requirements are crucial to understand, especially when it comes to older cars.

In California, the minimum liability insurance requirements are set by law, and as of 2025, they've changed.

The previous requirements were $15,000 for injury or death to one person, $30,000 for more than one person, and $5,000 for property damage.

But now, the requirements are $30,000 for injury or death to one person, $60,000 for more than one person, and $15,000 for property damage.

Here's a quick summary of the minimum liability requirements:

If your old car's value is low, it may not be worth getting full coverage. In fact, the cost of insurance premiums can be more than the value of your car, making comprehensive coverage less necessary.

Older cars are generally cheaper to insure, especially when it comes to comprehensive and collision insurance. This is because cars lose value as they age, reducing the potential insurance payouts after an accident.

You only need liability coverage and, in some states, personal injury protection for an older car. However, full coverage is often recommended, even if it's not the most cost-effective option.

The amount you'll receive from comprehensive and collision coverage depends on your car's actual cash value (ACV) minus your deductible amount. Typically, this is the car's value after depreciation, minus your chosen deductible.

Here's a rough idea of how deductibles work:

Keep in mind that a higher deductible means a lower premium, but you'll need to pay more out-of-pocket when making a claim.

If your older car is worth less than $3,000, it might be time to drop comprehensive and collision coverage. You'll need to check with your lender first, though, if you still owe money on the vehicle.

Older cars are generally cheaper to insure, especially when it comes to comprehensive and collision coverage. This is because they're worth less, so the potential insurance payouts after an accident are lower.

You can get full coverage on an older car, but it might not be particularly worthwhile, as rates will approach or sometimes exceed the value of the vehicle. If your car's value doesn't exceed what you'd be comfortable spending on a replacement, you're likely better off without a full coverage policy.

If you drive a highly coveted car that's more likely to be stolen, like a Honda Civic or Accord, you might pay more for insurance on older models than you would on a different car brand, new or old. This is because your vehicle has a statistically higher chance of being stolen.

Cars typically lose value as they age, so the potential insurance payouts after an accident drop as well. This is why older cars are usually cheaper to insure.

If you're unsure about getting full coverage on an older car, gathering and comparing quotes may help you make a decision. You can gather quotes for liability-only policies and full coverage policies for your older car, see the price difference, and make the best choice for your needs.

Here are some general guidelines for when to drop comprehensive and collision coverage on an older car:

Keep in mind that these are general guidelines, and the best decision for you will depend on your individual circumstances.

Dropping comprehensive insurance can be a good idea if you have a low-value or older model car, as paying extra for this coverage may not be worth it.

Most older cars are cheaper to insure, especially in terms of comprehensive and collision insurance, because they lose value as they age.

If you can afford to make repairs or buy a new vehicle out-of-pocket, you may not need comprehensive insurance.

You should assess your needs to decide when to drop comprehensive insurance, and consider factors like your driving record and history.

If you're a cautious driver or don't drive often and your car usually stays in your garage, you may not need comprehensive insurance.

In general, dropping comprehensive insurance is a good idea if insurance premiums cost more than 10% of the cash value of your car.

It's also a good idea to drop comprehensive insurance if you own a car that's highly coveted by thieves, as you may pay more for insurance on older models.

If you can pay to replace your vehicle in the event of a total loss, you may not need comprehensive insurance.

Old cars are often cheaper to insure, especially when it comes to comprehensive and collision coverage. This is because the potential insurance payouts after an accident drop as the car loses value over time.

If your older car is worth less than $3,000, you may want to consider dropping comprehensive and collision coverage. This can save you money on your premiums, but make sure to weigh your options carefully and consider your deductible.

You should get full coverage on an old car if its value exceeds what you feel comfortable spending on a replacement. If not, you may consider skipping it and opting for liability-only coverage instead.

If your vehicle is old, you may be able to drop comprehensive and collision coverage, which can save you money on your insurance premiums.

Cars older than 20 years are typically cheaper to insure because you may not need comprehensive and collision coverage, and your vehicle's value will likely be less than a newer car.

If a car is worth less money, your insurance company will have to pay less if you're involved in an accident where your vehicle sustains major or total damage.

For example, if your older car is worth $3,000, you may feel comfortable withdrawing $3,000 from your bank account if you were at fault for an auto accident, making it probably time to drop comprehensive and collision coverage.

However, if you drive a car that's highly coveted by thieves, like a Honda Civic or Accord, you may pay more for insurance on older models than you would a different car brand, new or old.

Cars lose value as they age, so the potential insurance payouts after an accident drop as well, making most older cars cheaper to insure, especially in terms of comprehensive and collision insurance.

If your deductible is $1,000 per accident and full coverage auto insurance costs you $500 more per year than liability coverage, you're already going to pay half of that $3,000 no matter what, making it worth considering dropping comprehensive and collision coverage.

A Civic can be a wise investment, as buying full coverage for one can pay off over a 15-year time period. After 15 years and one at-fault claim, the value of a Civic was still $947 more than the cost of insurance.

If you're looking for a reliable car that holds its value, the Civic is a great option. Its resale value is significantly higher than other models at the same age.

Some cars hold their value better than others, and it's essential to consider this when buying a new car. A well-maintained Civic can be worth more than the cost of insurance after 15 years.

The Civic's durability and reliability make it a great choice for those who want a car that will last. Its value can withstand the test of time and even minor claims.

Investing in a Civic can be a smart financial decision, especially when compared to other models that depreciate quickly.

Comprehensive insurance may not be a good investment for older cars, as the annual cost of insurance can represent 46% of the vehicle's value after 10 years.

Full coverage car insurance is likely a poor investment for vehicles over 10 years old, as the cost of insurance often exceeds the vehicle's value.

You can drop comprehensive and collision coverage if you have a low-value car or can afford to pay out-of-pocket in the event of a total loss.

Here's a rough estimate of when full coverage becomes too costly compared to the vehicle's value:

This table shows the approximate point when full coverage car insurance becomes too costly compared to the vehicle's value.

ValuePenguin conducted a thorough analysis to determine the cost of insurance and the value of midsize sedans over time. They gathered car insurance rates for popular brands in California, including Honda Civic, Toyota Corolla, Ford Fusion, and Chevrolet Malibu.

To determine the reasonable value of these vehicles, ValuePenguin used Kelley Blue Book's Fair Purchase Price. This data helped them understand how the value of these vehicles changed from 2010 to 2015 to 2020.

To estimate the point when full coverage becomes too costly, ValuePenguin projected the cost of insurance and the value of each vehicle after 5, 10, 15, 20, and 25 years. This involved using a rate of decay based on the change in value of these vehicles over time.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services, which was publicly sourced from insurer filings. This data should be used for comparative purposes only, as individual quotes may vary.

ValuePenguin's methodology involved comparing the value of these vehicles and the annual cost to insure them over time. By doing so, they were able to estimate the point when full coverage becomes too costly compared to the value of the vehicle before and after an at-fault accident.

Insurance can be a real puzzle, but it's worth taking the time to understand it. Full coverage car insurance is likely to be a poor investment for vehicles that are more than 10 years old, as the annual cost of insurance represents 46% of the value of older-model vehicles.

If you're driving a car that's older than 15 years, you may want to consider buying a new vehicle after an at-fault crash, as the rates are very likely to exceed the value of the vehicle. This is especially true for certain brands and types of crashes.

In fact, factoring in the cost of a typical surcharge after an accident, the difference between a yearly rate and the value of a vehicle is often less than $1,000 for cars older than 10 years. This means you may not need to keep comprehensive and collision coverage, especially if you have a low-value car or can afford to pay out-of-pocket in the event of a total loss.

Here are some examples of vehicles that may not be worth insuring at full coverage:

Ultimately, the key is to understand the costs and benefits of your insurance coverage and make informed decisions about what's right for you.