Things To Consider Before Dropping Full Coverage

You should always think twice before dropping full coverage.  Having multiple coverage options at your disposal financially protects you for a high number of scenarios in which your car is damaged or even stolen. Carefully analyze the value of the car, the cost of keeping full coverage and if it is worth dropping some policies and extra services.  If you are looking for better coverage, check our website and get free car insurance quotes.

First of all, analyze the costs of coverage and compare it with car’s current worth. Full coverage is usually expensive. When your car becomes around 8 or 9 years old you can start looking at the costs for comprehensive and collision coverage. Take your monthly premium to for the collision and comprehensive insurance. Multiply it by 12 (or by 4 if you pay quarterly) to determine your yearly cost. When your yearly cost for C&C becomes greater than 10 percent of your car’s current value, you can drop full coverage, and just pay the liability premium. This math is based on the law of averages for accident claims.

Liability-only coverage typically does not pay for damage to your own car or costs associated with your own injuries from an at-fault accident. If your vehicle is stolen the comprehensive insurance part of the full coverage kicks in. Comprehensive pays out ACV (actual cash value) if your vehicle is returned but damaged so badly that it is totaled or if it is not recovered. Liability-only insurance does not come stocked with the benefits of a rental car if yours is in the shop or a tow service if your vehicle breaks down.

If you’re considering dropping your full coverage car insurance, really take your time to analyze the pros and cons at hand.

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