Tools

Should I drop full coverage? calculator

Weigh what collision and comprehensive cost each year against the most they could ever pay on an older car, using the 10% rule of thumb.

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What it tells you

"Full coverage" usually means liability plus collision coverage and comprehensive coverage. The last two pay to repair or replace your own car — but never more than its actual cash value minus your deductible. As a car ages, that ceiling falls while the premium often does not. This tool compares the two so you can see when the coverage stops earning its keep.

How to use it

  1. Look up your car's current value in a used-car pricing guide, using its real trim, mileage and condition.
  2. From your declarations page or a quote, add up the cost of collision and comprehensive only — not the whole premium.
  3. Enter your deductible.
  4. Tick the loan or lease box if it applies: lenders and lessors almost always require both coverages until the car is paid off.

The math

  • Most the coverage could pay = car value − deductible.
  • Cost as a share of value = yearly cost ÷ car value. A common rule of thumb says to consider dropping physical-damage coverage when it costs about 10% or more of the car's value each year.
  • Years of premiums to equal the maximum payout = maximum payout ÷ yearly cost. If that is only a few years, you are close to pre-paying for the car.

Before you drop it

  • Ask yourself whether you could repair or replace the car from savings if it were totaled tomorrow. If not, the coverage may be worth more to you than the arithmetic suggests.
  • Consider dropping collision but keeping comprehensive. Comprehensive is often far cheaper and covers theft, hail, flooding, fire and animal strikes — losses you cannot avoid by driving carefully.
  • Your liability coverage is unaffected and remains required. Read state minimum vs full coverage: which do you need? before cutting anything else.
  • Dropping coverage on a car that is later stolen or flooded cannot be undone after the fact. Insurers will not add physical-damage coverage to a car that is already damaged.

Related: what full coverage car insurance actually means, how to find cheap car insurance without dangerous gaps.

Last reviewed October 4, 2026

Related guides

What full coverage car insurance actually means Full coverage is not an official policy type. Here is what the term usually includes, what it still leaves out, and when dropping it makes sense. State minimum vs full coverage: which do you need? How state-minimum car insurance differs from "full coverage," what each pays after a crash, and a simple test for deciding which one fits your car and finances. Collision coverage explained What collision coverage pays for, how the deductible and actual cash value limit your payout, and how to decide whether to keep it on an older car. Comprehensive coverage explained What comprehensive pays for (theft, hail, flood, fire, vandalism, animals, glass), how the deductible and payout work, and when it is worth keeping.

Terms used here

Full coverage Informal shorthand for a policy combining liability with collision and comprehensive, the mix lenders usually require. It is not a defined policy type. Collision coverage Pays to repair or replace your own car after it hits another vehicle or object, or rolls over, regardless of fault, minus your deductible. Comprehensive coverage Pays for damage to your car from causes other than a crash, such as theft, fire, hail, flood, falling objects, vandalism or hitting an animal. Actual cash value What a car was worth just before a loss — replacement cost minus depreciation — and the basis of most total-loss payouts.

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