Should I change my coverage to liability only? I paid off my car.

Are comprehensive and collision required?

No, once your vehicle is paid off you don’t need that extra coverage. Once you have made the final payment, you are no longer obligated by the lender to keep full coverage. So if it’s no longer needed to satisfy your lender, and it’s not required by the state, why do you need it? It’s important to consider what these coverages are and how they are used, as well as the minimal savings you may see compared to the value of your vehicle. Now, remember you should still celebrate that you have no car payment any longer. Let’s talk about the best way to insure that asset that’s all yours.

What do these coverages actually cover?

Collision is defined as the upset of your auto or its impact with another vehicle or object. This can include instances where one may hit a pole or guardrail, or hit another vehicle.

Comprehensive coverage is simply stated as anything other than collision. This includes the three main ways that it is utilized — fire, theft, or vandalism. Two other items generally covered under comprehensive involves contact with a bird or animal and breakage of glass.

Here’s an example.
If you live in Missouri like I do then you know deer season can be a crazy time for driving. Let’s say your on your way home and a deer darts out in front of you and causes severe damage to your car. Let’s say $5,500 in damage. Can you pull $5,500 out of your savings to fix your car that is now barely drivable? Is it worth spending, say $30 more per month to have that comprehensive and collision coverage?
Vehicles can be one of the biggest assets that people own, especially once it’s 100% yours. If you suddenly lost your car and didn’t get anything from your insurance, would it be worth it?
It’s up to you to decide if you want, or need, these coverages. You should weigh out the options and potential savings and decide what makes the most sense for you. I always say call us to get a quote with and without the coverage. Let’s see what the price difference really looks like for you so you can make an educated decision.