Do I need full coverage insurance on my used car?
Average full coverage insurance on a used car costs $148 per month, but you don't need full coverage insurance on your used car if you don't want it. States only require minimum liability coverage, and you can find cheaper rates for liability than full coverage. Unfortunately, without full coverage auto insurance, personal injury and damages to your vehicle will not be covered. Enter your ZIP code below to shop for cheap full coverage car insurance quotes.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Automatio...
Insurance Operations Specialist
UPDATED: Mar 24, 2024
It’s all about you. We want to help you make the right car insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Mar 24, 2024
It’s all about you. We want to help you make the right car insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Liability insurance is mandated in almost every state
- Full coverage auto insurance refers to a car insurance policy that includes comprehensive, collision, and liability
- Comprehensive insurance covers almost every type of claim
Dropping full coverage in favor of only liability can save car owners money on their monthly premium. However, there are several factors that should be considered before the auto insurance policy is reduced.
You should examine the benefits and drawbacks of reducing your coverage, and you should shop around for full coverage auto insurance from multiple providers.
Start comparing car insurance rates now by using our FREE tool above! Enter your zip code to get started!
Do you own your car?
Before you can consider reducing your car insurance policy, you need to own your car. If you still owe money to a financial institution, that company may require that you keep full coverage.
This is because banks and other lending institutions want to protect their investment in the event that you stop making your car payments.
If the car is damaged, the financial institution may want you to repair the car to its pre-accident condition. If you default on your car loan, the company can recoup as much money as possible.
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Full Coverage Insurance
The term full coverage auto insurance refers to a car insurance policy that includes comprehensive, collision and liability.
This means that your car will be repaired or replaced minus your deductible under several different types of conditions:
- Car Accident
- Hitting an Animal
- Road Damage
- Vandalism
- Weather Damage
Comprehensive Insurance
Comprehensive insurance covers everything that isn’t a car accident.
For instance, if someone vandalizes your car by running a key down your side panels, the comprehensive part of your car insurance would cover the damage.
Without comprehensive coverage, you would be responsible for 100 percent of the repairs out of your own household budget.
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Collision Insurance
Collision insurance protects you in the event that you are in a car accident and the accident was deemed your fault or no fault.
It also protects you if you hit an object like a pole or your garage door.
Read more: If I hit a pole, will insurance cover it?
In this instance, the insurance company would pay the repairs to your vehicle minus your deductible.
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Liability Insurance
Liability insurance protects the other driver and their car in the event that you are involved in an accident and the accident was determined to be your fault.
Basic liability coverage will not cover this type of damage.
It does not repair your car or pay any of your medical expenses if you are injured in the accident.
Read more:
State Minimum Insurance Requirements
Before you drop your full coverage, it is important to understand that all states require a minimum amount of car insurance.
Car owners cannot drive around without car insurance.
If they do, they could be subjected to fines and the loss of their driver’s license.
Dropping Full Coverage
If you have paid your car off or purchased it outright in cash, you can absolutely drop your full coverage auto insurance in favor of liability insurance and save money on your monthly premium.
However, you should consider how you will pay for the repairs or replacement of your car in the event that it is damaged via an accident, severe weather, fire or vandalism.
Most car owners do not have enough money in their savings accounts to repair or replace their cars.
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Alternatives to Reducing Car Insurance
If you are still debating on whether or not to reduce your car insurance coverage, consider some alternative options, including making sure you are getting all the applicable insurance discounts.
These discounts usually include:
- Certain Car Safety Features
- Good Student
- Multi-Line
- Safe Driver
Raising Your Deductible
Raising your deductible can lower your monthly car insurance premiums.
This is especially true if you have a car insurance policy with an extremely low deductible, like $100 or less.
Raising your deductible to an amount you can still afford can lessen the stress on your monthly budget while still providing you with adequate car insurance.
Another alternative to reducing your coverage is to shop around for full coverage auto insurance from a variety of insurance companies.
Monthly premiums between insurance carriers can vary greatly.
Start comparing car insurance rates now by entering your zip code in our FREE tool below!
Compare quotes from the top car insurance companies and save
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Automatio...
Insurance Operations Specialist
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.