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When to drop collision? Insurance.com data reveal when drivers decide to risk it all

By Posted : 09/09/2014

September 9, 2014 (Foster City, CA) – More drivers choose to drop collision coverage when their cars reach eight years old than at any other time, according to new data from Insurance.com, the car insurance comparison-shopping website.

The percentage of drivers who shop for collision coverage falls 15 points for models eight years old – from 90% to 75%, the website noted in its analysis of more than 500,000 car insurance quotes.

For drivers of newer cars, collision coverage – which pays to repair or replace a car even if the driver is at fault in an accident – is a fact of life because lenders require it.

“There’s a pretty big dip after the sixth year, as almost all new-car loans are paid off by then,” said Insurance.com Managing Editor Des Toups. “But it’s still a big decision when a car is worth thousands of dollars. When you drop collision coverage, you’re saying you can afford to replace the car without any help.”

Nationwide, the point at which at which half of owners choose to go without physical damage coverage on their cars occurs in year 12, Toups said, but differs substantially among states:  The tipping point in California is 10 years old, he said, but 13 in Ohio.

“The cost of collision coverage varies a lot more from state to state than the value of cars does,” Toups said. “Insurance is cheaper in Ohio. That changes the equation for many drivers.”

Insurance.com’s auto insurance coverage calculator allows drivers in each state to see what kinds of coverage are purchased by drivers with similar cars and situations, including collision.

Nationally, here is the percentage of owners seeking collision coverage as vehicles age:

Age of car -- % who carry collision

New -- 100%
1 -- 99%
2 -- 99%
3 -- 98%
4 -- 97%
5 -- 97%
6 -- 96%
7 -- 90%
8 -- 75%
9 -- 65%
10 -- 60%
11 -- 55%
12 -- 48%
13 -- 42%
14 -- 36%
15 -- 32%
16 -- 27%
17 -- 24%
18 -- 22%
19 -- 20%
20 -- 20%

Methodology

Insurance.com analyzed online quote information submitted by 557,238 drivers Jan. 1, 2013, to July 2014.

About Insurance.com

Insurance.com, based in Foster City, Calif., is an online resource where consumers can compare side-by-side, real-time auto insurance quotes from multiple insurance carriers.  Since its inception in 2001, Insurance.com has delivered more than 11 million quotes to consumers – who, in less than 10 minutes, fill out one form and save an average of $540 annually – making it one of the largest independent insurance marketplaces in the U.S.  Participants include some of the biggest names in auto insurance, including Progressive, Esurance, The Hartford, Travelers and 21st Century.  Experts from Insurance.com are available for interviews on all issues pertaining to auto insurance.

Twitter: @InsuranceDotCom

About QuinStreet Inc.

Insurance.com is owned and operated by QuinStreet Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world.  QuinStreet is committed to providing consumers and businesses with information they need to research, find and select the products, services and brands that best meet their needs. 

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