Should I drop full coverage car insurance on my older car?

Should I drop full coverage car insurance on my older car?

When your car was new, you probably took great pains to keep it spotless, park in the back of parking lots to avoid door dings, and make sure your new ride was covered with collision and comprehensive car insurance coverage, which people typically refer to as “full coverage” car insurance.

But now that your car or truck has aged a bit, is it still worth it to carry collision or comprehensive auto coverage? In South Carolina, liability car insurance is the only kind of insurance that is required, so is it worth it to keep paying more for better coverage?

Is your car paid off? 

If you’re still making car payments, more than likely, your auto lender will require you to keep collision and comprehensive coverage on your car until it is completely paid off. This is protection for the lender, as they still technically own your car and want to protect their investment. Once your car or truck is paid in full, you have the option to drop full coverage if you wish. 

How much is your vehicle worth? 

How much car insurance coverage you need is directly related to the value of your vehicle. For example, if you have a $1,000 deductible, and your vehicle is only worth $2,000, is it really worth paying an extra $500 a year for collision or comprehensive auto insurance? That’s a judgment call for you. Sometimes, having a savings account to pay for repairs is a better financial decision than paying for collision and comprehensive car insurance long-term, but that depends on your financial situation. 

You don’t need collision insurance if you don’t drive the car

If you’re keeping your vehicle (such as an antique car) for sentimental purposes and don’t drive it, there’s no reason to keep collision coverage. A vehicle that never moves isn’t going to get into a collision. It is a good idea to keep comprehensive on a stored vehicle, though, because storm damage, theft and vandalism can still occur. 

Do you live in a place with a high likelihood of a covered event? 

Some locations are better than others when it comes to keeping your vehicle safe. If you live near a body of water and floods are a concern, keeping comprehensive auto coverage could be a very wise choice. Same if you live in an area that’s seen multiple break-ins or car thefts. If you have to travel to work down a route that is famous for accidents, includes a particularly tricky spot to drive in the rain, or is known to be dangerous, keeping collision insurance can be a good investment. Assess your risks to decide whether to keep or drop full coverage. 

Want help deciding if you should keep full coverage car insurance? 

Give Edwards Insurance Agency in Taylors, SC, a call today. We can answer all your car insurance questions and maybe even find a way for you to keep full coverage for less than you’d pay for liability coverage only. Call us today!