When can you drop full coverage on your vehicle?
When can I drop full coverage? I have full coverage on my 2017 Chevy Equinox. I'm still making payments on it.
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Answered on Jul 06, 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.
“If your vehicle is financed, you’ll likely be required to keep full coverage on your vehicle. It is a requirement on most lending contracts.
Full coverage consists of both comprehensive insurance and collision insurance. These coverages protect your vehicle in the event it’s damaged.
While you are required to pay a deductible, your insurance will cover the rest of the damage, regardless of fault.
You’ll want to check with your lender to find out whether you’re required to carry full coverage. If you aren’t, you could drop full coverage. However, you’ll want to ensure you’d be able to cover any damage or the rest of your loan if your vehicle is in an accident.
If it would be difficult or create financial hardship for you, you should keep full coverage on your vehicle.”
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