Do I need to keep full coverage on 2013 Toyota Corolla once I pay it off?

I'm going to be paying off my car soon and I'm considering dropping my full-coverage insurance. My six-month premium would be cut in half with just liability. My car isn't in the best shape, so I'm not really concerned about damage.

Answer
“As most finance companies require that you maintain comprehensive coverage and collision coverage, you could drop them once you pay off your loan.
However, before you switch to liability insurance only, you should consider the cost of getting a new vehicle if your Camry is totaled.
If you wouldn’t have trouble financing a new car, then you can drop your full coverage. But if it would be difficult to obtain another vehicle, you should maintain full coverage.
If you mainly want to drop full coverage to save money, you should first get quotes from other car insurance carriers. By shopping around, you may be able to find a more affordable rate for full coverage.
If you’re looking for a new insurance company, Jerry can provide you with competitive quotes in under a minute. “
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Emily Maracle
Answered on May 07, 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.
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