Should I or should I not have full coverage on my car?

There is no question that you want to make sure you always have really good liability limits on your car insurance. Liability covers you if you hurt someone in an accident and if someone hurts you. However, when is it a good time to drop full coverage on my car?

There are a few parts to full coverage

  • Comprehensive-cracks on your windshield, dents in your hood from hail, vandalism, if you hit a deer, theft are all things covered by comprehensive.
  • Collision-an accident where your car collides with something else, another car, telephone pole etc.
  • Also there are extra additions you can make a part of your policy; towing and labor, and rental car reimbursement for when your car is in a covered loss.
  • You can chose to remove only Collision insurance and keep the Comprehensive, towing, and rental car reimbursement.


Here are some things to consider to help figure out the answer to the question, “When should I drop physical damage coverage on my car?”-

  • Loan or lease? Whomever finances it probably demands you keep full coverage, so dropping physical damage coverage is usually not an option.
  • What is the market value of my car? A car depreciates with age, check Kelley Blue Book and see what your car is worth. If that value is getting down around $3000 it might be time to take some coverage off.
  • What am I willing to give up? Understand that you are giving up the physical damage to your car. That means that if a tree falls on your car tomorrow-it’s gone.
  • Can you financially afford to replace your car? If you have a decent amount in savings and your car has depreciated to a point where you can afford to replace it, then it might be time to take full coverage off the car. If you do not have enough in savings and could be put in a tough place financially if your car was totaled tomorrow then you might need to hold on to the full coverage for a bit longer.

If you have any questions give us a call at 952-448-5028 and we would be happy to share personal situations and give our best advice to help you make a decision!


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