Should I keep full coverage or get liability only for my Chevy?

I have a financed 2016 Chevy Suburban. I have full-coverage insurance on it now, but once I finish paying off the loan in two months, I'm thinking of switching to liability only to save money. Do you think this is a good idea?

A used 2016 Chevy Suburban is still worth a substantial amount of money—around $30,000, at least. If you had to replace it out-of-pocket in the event that it’s totaled, could you do it?
If the answer is yes, then sure, you can get liability insurance only. But most people don’t have $30,000 lying around, and if your answer to the above question is no, then you should probably stick with full-coverage insurance.
Don’t forget that full-coverage insurance also covers things like collisions, fire, vandalism, falling objects, wind, and hail, which can help you pay for repairs.
Instead of getting rid of your full coverage, ask your insurance agent or broker about possible alternatives. For example, maybe you can raise your deductible to lower your premium.
Carol Chung
Answered on Apr 12, 2021

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