Do I still need full-coverage auto insurance if I've paid off my car loan in full?
I just paid off my car loan in full. I want to save money on insurance, but I'm not sure if I can change my coverage to something cheaper.
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Answered on Apr 27, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“Once you pay off your car loan, you’re no longer contractually obligated to carry full-coverage car insurance.
But that doesn’t mean you should completely drop your coverage in favor of liability insurance only.
Instead, think about the value of your car. Is it worth $10,000 or more? If so, keeping collision coverage and comprehensive coverage might be worth it.
If you’re comfortable taking a total loss on the car in the event of an accident, getting liability-only insurance might save you money.
Whatever you decide, check out Jerry to compare car insurance rates and get the best deal possible.”
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