Take the time to do the math and find out how the value of your car fares in light of your insurance deductible and the premiums you pay annually.
You should never drop full coverage car insurance if your vehicle is financed.
Read on to learn whether you should drop your full coverage auto insurance policy. Then enter your zip code above for a free online auto insurance comparison!
Calculating Whether or Not To Drop Full Coverage
Look at a variety of factors when trying to decide whether or not to drop full coverage.
First, you should find out the actual blue book value of your car. Vehicles lose value rather quickly and you may be surprised to find how little your car is actually worth, even after just a few years of use.
You also need to know how much your full coverage, beyond what is required by law, costs per year.
To do the math, subtract the amount of your deductible and the amount your full coverage insurance is costing you from the present value of your car.
If the amount is a number that you could not afford to pay out, then you should probably continue to carry full coverage insurance.
However, if the amount is rather insignificant, then you should simply drop full coverage and save the extra amount to cover damage from an accident or other types of loss.
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If there is still a lien on your vehicle, this means that you share ownership of it with another entity.
Therefore you must carry full coverage so that if your vehicle is damaged, you will have the ability to make the necessary repairs.
If you were to drop full coverage from a financed vehicle, the lienholder will likely require you to repay your loan in full right away.
If you have realized that your car’s value and the high cost of full coverage insurance does not make sense anymore, focus on paying off the car in full, so that you can drop the full coverage insurance.
Finding Affordable Full Coverage Car Insurance
If you have determined that you simply can’t drop full coverage car insurance, your next step is to shop around and find the best price possible on it in order to save money.
Shopping around truly is the key to getting the best price because the different companies offer different rates and discounts and have different rate setting guidelines.
Remember to compare more than just price when looking for new car insurance coverage.
Check into the customer service record of the insurers that are offering the best prices. You can get information through your state’s department of insurance.
In addition, you need to make sure that the insurer is financially stable before purchasing a policy. This information can be obtained through independent insurance ratings companies such as A.M. Best, Moody’s or Standard & Poor’s.
Get the information you need to make the right decision on your full coverage car insurance.
Start now with our free online quote tool to help you choose the most affordable policy to meet your needs. Enter your zip to start now!