Should I remove full coverage from my car if it will save me $1,200?

I just paid off my car last week and I am thinking about taking full coverage off my policy. It will help save me about $1,200 every six months! What do you think?

Answer
“Deciding if you should remove full coverage from your policy is a big decision that depends on several factors. If your car is totaled in an accident, would you be able to afford to buy a new one without the collision coverage payout?
Since the car was just paid off, is it still relatively new? If so, that means it still has a high actual cash value and you may want to keep the coverage on the policy.
It would be a good idea to find out what the actual cash value of your car currently is. You can do this by using an online depreciation calculator or Carfax’s History-Based Value tool.
If you can save more than the actual cash value by removing full coverage, then it would make sense to do so.”
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Shannon Martin
Answered on May 14, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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