Car insurance and the types of optional insurance put on a vehicle are personal choices one has to make depending upon ones financial and overall situation. Most states require some type of liability insurance on a vehicle so typically there is not a point in time in which to take off the state mandated liability insurance, unless you have sold or gotten rid of the vehicle.

There is really no such thing as 'full coverage". Most people use this term to refer to physical damage coverages. Physical damage coverages consist of collision and comprehensive coverage.

Generally, collision insurance covers damage to your automobile caused by collision with another object or by upset. Comprehensive insurance covers damage to your automobile from vandalism, theft or glass breakage. (Most lien holders require physical damage coverage if you are financing or leasing your vehicle.)

With full coverage of collision or comprehensive then your insurance company will pay you your vehicle's actual cash value (ACV) if it is in a covered loss. This typically means that the car is damaged beyond repair (or too costly to repair) or stolen. Normally if you want your car fully protected you will want to continue to carry these coverages until it stops making economical sense to carry it. In other words, you should stop carrying this coverage when your deductible and this coverage's premium starts to equal your vehicle's ACV.

Each person is different, but if you have a $500 deductible and the car's value is $5000 then the most you can recover in a total loss is $4500. You would then need to decide if it is worth it to you to pay the physical damage premium portion of your auto insurance in return with the option of re-couping that money in the event of an accident. If the premium amount still makes economical sense to pay then you should keep the full coverage.

In order to determine if you think physical damage (PD) insurance, comprehensive and collision, are necessary for your vehicle first determine the value of your vehicle. You than can weigh the value of your vehicle against your PD premium, as well as the deductible amount you would pay if you needed to use the coverages.

An older vehicle that has a lowered actual cash value (ACV) may not be worth the extra expense of comprehensive and collision coverage. You do not want to pay more for insurance than the vehicle you are protecting is actually worth.

If you decide want to keep comprehensive and collision on the vehicle, you may see if you can lower your premiums for these coverages by raising your deductible. You may also see if there are any discounts available to you.

If you decide that your vehicle does not need physical damage coverages any longer, you still will need to keep the state minimum liability insurance on the vehicle. Also keep in mind that if you owe a lien holder money on the vehicle, due to a lease or loan, then they most always will require you to keep full coverage on the vehicle until the loan or lease if paid off and thus you get the title turned over to you. If you own your car in the free in clear then keep full coverage on it is up to you at what point in the car's life you want to take off these coverages.

To help you figure out the right coverages for you, try using our insurance coverage calculator. Figuring out car insurance can be confusing and this tool will help you understand better. Answer a few short questions and we will give you some car insurance guidance on limits, deductibles and what kind of coverage you need.