Auto insurance is one of those monthly expenses that is important and necessary. However, if your vehicle is paid off, you may be wondering whether you still need to pay for full coverage. Removing full coverage from your vehicle and opting for liability coverage only will not be the right choice for everyone.
To determine if this is the right choice for your and your individual situation, it is important to understand the difference between the two auto insurance coverage options and what considerations you should take into account. Here, at Amy Tounget Insurance Agency LLC, we want to ensure that Midlothian, TX residents are presented with the facts so that they can make informed decisions.
Full Coverage vs. Liability Auto Insurance
A full coverage auto insurance policy will consist of several different types of coverage that helps ensure you are protected in the event of an accident. Some examples of coverage that your policy would have include collision, comprehensive, liability, and uninsured/underinsured motorist. If found financially responsible for an accident, this coverage will protect you and cover the repair or replacement of your vehicle. It can also provide cover if your vehicle is stolen or damaged by a policy-covered event.
A liability-only auto insurance policy will consist of coverage that protects you against third-party insurance claims for property damage and bodily injuries when you are found at-fault for an accident. If you sustain any losses in the collision, you will not be covered.
Things to Consider
When determining whether to eliminate your full coverage and switch to liability only, there are a few important factors to consider. Since your vehicle is paid for in full, you won’t have an issue with your lender, since they normally require full coverage to be carried on a leased vehicle.
However, you will want to consider how much you drive. The more often you drive on the road, the higher the risk you will be involved in an accident. In addition, if your vehicle is still worth a considerable amount, or you do not have savings to replace your vehicle if it is wrecked, you may need to stay fully covered.
If you are unsure whether you should stay with your full coverage policy or switch to liability coverage only, contact us at Amy Tounget Insurance Agency LLC. Proudly serving the residents of Midlothian, TX, we will be happy to sit down with you and discuss your insurance needs.