Many car owners sigh in relief once they finish paying off their car loans. The financial sacrifice made over extended periods is finally over. Often, car owners will shift their attention to the car insurance they’ve invested in and wonder how much they need. The Deboo Insurance Agency Inc. team knows car owners question how much insurance they need. As a result, we’re here to eliminate some confusion for Deerfield Beach, FL drivers and help them explore their insurance options. 

Should I downgrade to liability instead of full coverage auto insurance after paying off my car?

If you own a late-model car, the expense of paying for damage to your car is likely high. For this reason, full coverage auto insurance is probably worth keeping. Liability coverage won’t cover your vehicle, only the parties that aren’t at fault in a car accident. This means your vehicle would be left untouched if damaged in a car accident. Also, the cost of your insurance is probably far less than the value of your car, making your insurance a wise "money-saving" investment.

However, many car owners question whether or not they need to continue to carry full coverage auto insurance once they’ve paid off their car loans. If you couldn’t afford to pay for the repair or replacement of your car out of pocket, full coverage auto insurance is probably still a wise investment. As your car ages and its value declines, you can reconsider full coverage auto insurance once the cost of car insurance exceeds your car’s value. If you have questions about insurance coverage, call us. We’re standing by.