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I just paid off my car. Should I drop full coverage auto insurance?

Auro insurance can protect you, other drivers, their property, and your vehicle. However, this is heavily dependent on the type of auto insurance you carry. More often than not, many drivers question how much insurance is necessary and at what point adjustments should be made to coverage levels. An insurance agent is usually the best person to ask when you have questions regarding your sp[specific situation. This is why our Oak Ridge Insurance Services team is dedicated to educating Oak Ridge, NC drivers about their auto insurance options. 

What type of auto insurance is legally required to drive your car?

All drivers must carry auto liability insurance. This insurance provides coverage for other drivers, their properties, and vehicles if you cause an accident. However, this form of coverage doesn’t offer any coverage for you and may not be adequate, depending on your situation. If you have an auto loan, your lender generally requires you to carry more than auto liability insurance. Instead, you’re required to invest in full coverage auto insurance, which will protect your car, your property, and you from personal injury and damage, as well as other drivers.

I just paid off my car. Should I drop full coverage auto insurance?

It depends. If you own a late-model car, it’s likely that your car’s value still exceeds the value of your insurance policy, making it a worthwhile investment. This also means that your insurance company will repair any damage your car may incur. Many drivers wouldn’t be prepared to pay for car damage out of pocket. Car insurance makes repairing your car more affordable. Aside from a deductible, that’s all a car owner pays to have their car repaired. However, once you pay off your car, you may question if full coverage auto insurance is still a good investment. If you own an older car that is likely worth less than your auto policy, it may be a good idea to carry the minimum auto insurance required. If you’re in an accident, your insurance company would probably consider your car a total loss and opt not to repair it because its value is less than your policy. However, an insurance agent can help you determine your best option. Give us a call. We’d be happy to answer your questions. 

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