Should I remove full coverage from my vehicle if I'm going to pay off my loan in the near future?

I currently have full coverage on a car I financed, but I'm about to pay it off. To save money, I'm thinking of removing collision and comprehensive coverage from my car. I'm also thinking of picking up some extra money driving for Lyft. Should I remove full coverage and just get liability?

Answer
“Congrats on (almost) paying off your car!
Before you decide whether to remove full coverage on your car, you should ask yourself a few questions:
  • How many miles does the car have? How old is it?
  • Can you afford to pay for repairs due to an accident or mishap out of pocket?
  • Are you accident prone or an aggressive driver?
  • What’s the car currently worth?
If your car is seven years old and has high mileage, full coverage probably isn’t worth it. Use a tool like Kelley Blue Book to look up the value of the car. If it’s worth less than about $5,000, move over to liability coverage only to save hundreds of dollars.
If you’ll be driving for Lyft, you may want an additional endorsement or rideshare coverage. While Lyft does provide insurance for its drivers when they’re transporting a passenger or waiting for a fare, this coverage may offer less protection than you need.
USAA and Allstate are two of the most affordable options for rideshare coverage. “
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Eric Schad
Answered on Apr 22, 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.
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