Do I need full coverage on my car after it's paid off?

I just paid off my 2015 Honda Civic. I was required to have full coverage by my lender. Since it's paid off, do I still need full coverage? What insurance is recommended for a vehicle that's paid off?

Answer
“While you aren’t required to keep full coverage on your vehicle after it’s paid off, you may want to consider keeping it. However, your car insurance coverage will depend on your budget, the condition of the vehicle, and if you can afford to pay for maintenance out of pocket.
Both collision insurance and comprehensive insurance protect your vehicle from damage. If your vehicle is damaged in an at-fault accident and you only had liability car insurance, you would pay for the damage to your vehicle.
Most experts recommend keeping the highest amount of coverage you can afford on your vehicle. If you can afford full coverage on your vehicle, keep it. If it’s causing you financial hardship or the cost of your insurance outweighs the value of your vehicle, you may choose to reduce your coverage to liability only.”
avatar
Emily Maracle
Answered on Jul 29, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.