When can you stop carrying comprehensive coverage on a car?
I am financing a 2017 Chevy Equinox. When can I stop carrying full coverage on my car?
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Answered on Jul 15, 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.
“Since your vehicle is financed, you will most likely need to carry full coverage until your vehicle is paid off.
Most lenders require that you carry both comprehensive insurance and collision insurance. To find out whether your lender requires it, you’ll want to look into your loan agreement.
If your lender doesn’t specify that you are required to carry full coverage, you can drop it from your car insurance policy.
However, should your vehicle be damaged in an accident or by another peril, you’ll be required to pay for the damage out of pocket.
If your vehicle was totaled in an accident that was your fault, you’ll also be responsible for the remaining balance of your loan.”
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