When Should You Have Full Coverage Auto Insurance

It doesn’t matter whether you bought the car new or used if you are still making car payments then you will most likely be required to carry full coverage insurance. What is full coverage auto insurance? Do I need full coverage on my car? Do I need full coverage insurance on a used car? My car is paid off. What type of insurance do I need?

Here's what you need to know about what is usually included in full coverage car insurance and when you can get rid of these policies. When should you drop full coverage on your car? The answer varies depending on the type of car you drive, your financial situation, and the exact type of coverage you carry.

There's no standard definition of "full coverage" car insurance. Car insurance isn't a one-size-fits-all purchase. Your car insurance should be customized to fit your need. A few things you should consider are how much coverage you'd need to protect your property and assets.

However a quick way to decide if you need full coverage is to assess your car's actual cash value. Then, compare that to the amount you pay a year for comprehensive and collision coverage, which is what comprises full coverage, along with liability insurance. As your car ages and you rack up miles, the value goes down.