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Q

I just paid my car off could my full coverage be lower?


A

Congratulations on paying off your vehicle so now you own your vehicle and no longer having a lien holder or lease holder to answer to. Without having a lien holder mandate the type of insurance you need on the vehicle any longer you can decide on what auto insurance you want for your vehicle, beyond the state minimum required coverage.

If you do not feel that you need "full coverage" then you should be able to lower your insurance to the state minimum liability coverage. Full coverage usually refers to having the optional coverages of collision and comprehensive on your automobile. Both of these covers are physical damage coverages that provide protection to your vehicle in case of a collision with other vehicles whether your fault or not (collision), and from theft, hail, damage from animals, etc. (comprehensive). 

You may believe that the cost of these optional coverages are not needed due to the age or condition of your vehicle and thus may decide to remove them from your policy or you might instead want to change the deductibles to a higher amount, thus lessen the premium rate, and keep the coverages.

It is a personal choice to make depending on your financial situation and insurance needs for your particular vehicle whether to keep physical damage coverages once you no longer have a lien holder requiring you to do so. If you follow the link we have help for users to determine if they need the coverage. We can quote you what the different in your premium would be if you took these coverages off versus leaving them on.


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