Is Comprehensive Coverage Worth It for Older Vehicles?

As your car gets older, you might start looking for ways to reduce insurance costs—and comprehensive coverage is often the first place people look. After all, if your car isn’t worth much, why pay to protect it against hail, theft, or falling tree branches?

That’s a valid question. Comprehensive insurance is optional, and while it adds protection, its value depends on what your vehicle is worth and how much peace of mind you want.

What You’re Paying For With Comprehensive Coverage

Comprehensive coverage protects your vehicle from damage caused by non-collision events, such as:

Theft or attempted theft
Vandalism or broken windows
Storms, hail, and flooding
Fire or explosions
Animal strikes
Falling objects like branches or debris

This type of damage can still happen to an older car. But whether it’s worth covering depends on the payout potential compared to what you're paying each year.

The Key Question: Is It Worth the Premium?

The decision comes down to simple math. Compare the cost of your comprehensive premium to your car’s actual cash value (ACV) and deductible. If your annual premium and deductible together approach or exceed the vehicle’s value, the coverage may no longer make financial sense.

Car’s Value	Comprehensive Premium	Deductible	Likely Worth It?
$8,000	$250	$500	Yes
$3,500	$300	$500	Maybe not
$1,800	$280	$500	Unlikely

Tip: Find your car’s current value using a trusted source like the Canadian Black Book or Kelley Blue Book before deciding.

When It Might Still Be Worth Keeping

Even on older cars, comprehensive coverage can still be a good idea in some situations:

You park on the street or in high-crime areas
Theft and vandalism risks are higher, especially overnight.
Your region has frequent storms or wildfires
Weather-related claims are unpredictable but potentially costly.
You can’t afford to replace the vehicle suddenly
Even a small payout is better than nothing if you're financially stretched.
You want to avoid out-of-pocket repair surprises
A cracked windshield or hail damage could cost more than your premium.

Note: Even if your car isn’t worth much, you may value the convenience and coverage if you’re not prepared to replace it on short notice.

When It Might Be Time to Drop It

There are also clear signs that it may be time to let go of the coverage:

Your car’s value is below $2,000
The premium may exceed the likely payout.
You have savings set aside for a replacement
If you’re comfortable self-insuring, you can drop the policy.
The deductible is nearly as high as the car’s value
You might end up receiving little to no money after a claim.

Caution: Don’t drop comprehensive without reviewing your full policy. Make sure you understand what other coverages remain and whether your lender (if any) requires it.