All drivers are required to carry liability insurance regardless of whether their car is paid off or not. However, if you’ve been paying for full coverage auto insurance and want to reduce your coverage to liability only, you should consider a few factors first.
Our team at OnQuote Insurance knows that navigating auto insurance may be a bit confusing for our Illinois customers. However, we’re here to cut through the confusion.
As a General Rule of Thumb…
It’s usually recommended that insurance drops or decreases after your car’s mileage hits 100K and your car is five to six years old. However, how much auto insurance you invest after your car is paid off should be determined by your car’s value and the cost of parts. For example, if you drive an expensive car, it may be in your best interest to invest in full coverage because your car still has significant value and the replacement parts are expensive.
Many people would be unable to pay for the repair of an expensive car out of pocket. Full coverage insurance provides more benefits because your insurance policy would pay for the repair of your car.
Conversely, if you own an old car whose value has dwindled considerably, investing in full coverage auto insurance wouldn’t be wise. More than likely, there’s a good chance that the deductible will exceed the value of the car, totaling your car if you’re in an accident. In this scenario, the state-required liability insurance would probably be a wiser choice.
However, rather than puzzling over how much auto insurance would be adequate for your unique situation, it’s best to get help from professional insurance agents.
Give Us A Call
Our team at OnQuote Insurance in Illinois could help you explore your options and decide on coverage that suits your needs. Call us if you have questions. We’d be happy to eliminate the confusion.