There may be more than one reason why you’re looking forward to the day when your car is finally paid off. Not only will you finally be able to dispense with that monthly payment, but you will no longer be required to carry full coverage insurance, providing you with significant savings opportunities by dropping your coverage to liability only. However, you might not want to be too hasty about pulling the trigger on your full coverage insurance. Here are three big reasons you may want to consider holding on to your full coverage.
1. You may not save as much as you think
When determining a monthly premium, liability coverage alone is naturally going to be less than full coverage. However, since the premium also takes into consideration things such as the model year and mileage on your car, this reduction in costs may not represent significant savings in relation to the risk that you are taking on in return for those savings.
2. Dropping full coverage has its consequences
The biggest consequence of not carrying full coverage insurance is that in the case of an accident where you are determined to be at fault, you will receive no recompense for either damage to your car or your injuries. Even if it’s determined to be a 50/50 accident, the half payment on your claim may leave you in a precarious financial situation where you may be unable to replace a totaled vehicle or pay your medical bills.
3. Paying a deductible is better than paying for everything
We all have bad days from time to time, and a lot of what happens on the road is out of our control. One little fender bender can leave us high and dry, with no vehicle and a budget-busting repair fee. Full coverage insurance that has a low deductible may be expensive, but it may be worth adjusting to a higher deductible policy rather than dropping full coverage altogether. That way, you may still be able to take advantage of towing services and rental car provisions that will get your car fixed and back on the road while you will still be able to drive to work and take care of your other responsibilities.
EZ Insurance of Austin Texas is the local direct agency you can trust. Contact us today for affordable insurance options that will protect you while staying within your budget.