Call Us (954) 421-9953 ☰ ˟
Automatic Insurance
(954) 421-9953
  • Home
  • Coverage
    • Automobile
    • Artisan Contractors
    • Boat
    • Business
    • Classic Car
    • Collision
    • Commercial Auto
    • Commercial Property
    • Condominium
    • Flood
    • General Liability
    • Golf Cart
    • Homeowners
    • Motorcycle
    • Recreational Products
    • Renters
    • RV
    • Tag & Title Services
    • Workers Compensation
  • Get A Quote
    • Automobile
    • Business
    • Commercial Property
    • Homeowners
    • Renters
    • Quote and Bind
  • Blog
  • Make A Payment
  • About Us
    • About Us
    • Common Insurance Discounts
    • Our Office
    • Our Reviews
    • Privacy Policy
  • Contact
    • Contact Us
    • Refer a Friend
automobile Automobile

Minimize your risk with the best options

homeowners Homeowners

Get the right coverage at the right price

business Business

Protecting you for life, disability and long term care

recreational Recreational

Superior service to fit your needs

Tag & Title Tag & Title

Let our expertise guide you

Home > Blog > Should You Change Your Auto Insurance While Paying Off a Loan?
THURSDAY, MAY 5, 2022

Should You Change Your Auto Insurance While Paying Off a Loan?

It always feels good to make that final payment on a loan, especially when it is your vehicle with a long life ahead of it. Getting rid of that big payment every month is a good thing, but for some people, it may mean reducing the amount of auto insurance they carry. Should you change out your car insurance for a less expensive option? Before you make the decision to do that, consider a few important factors that could influence your decision to make such a change. 
red car from front
Must Have and What You May Drop 
In nearly all states, it can be a requirement to carry general liability insurance. This type of insurance does not protect you or your vehicle but rather the other people involved in an accident that you cause. This is the type of insurance you cannot drop but must maintain to legally operate your vehicle in the state. Most people have additional insurance including comprehensive coverage, medical payments and collision insurance. These are considered optional plans in most cases. But, whether or not you drop them is a decision you have to make regarding your situation. 

When is it a Bad Idea to Reduce Your Coverage? 
Let’s say you own a vehicle with just liability insurance. You’re involved in a car accident. Your vehicle is damaged and needs extensive repairs. Can you afford to make those repairs without having insurance to help you to cover it? More so, if your vehicle is totaled, could you afford to purchase a new vehicle to replace it? If on the other hand, you maintained comprehensive coverage, you may not have to make any additional purchase. Rather, your auto insurance steps in to cover these losses for you, assuming you have the right type of coverage for the incident. 

If your vehicle may be very low in value and can be unlikely to last very long, you may not need a large policy to cover its value. However, if and when you cannot afford to replace the vehicle if it is totaled, it is usually a good idea to carry car insurance that can help you through the repairs or replacement of the vehicle instead. 
Posted 6:00 PM

Tags: auto insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019

  • auto insurance(27)
  • automatic insurance(19)
  • car insurance(18)
  • tag and title services(7)
  • automatic insurance agency(3)
  • boat insurance(2)
  • golf cart insurance(2)
  • recreational vehicle insurance(2)
  • rv insurance(2)
  • motorcycle insurance(2)
  • builder's risk insurance(1)
  • home insurance(1)
  • general liability insurance(1)
  • vehicle registration(1)
  • how to be a confident driver(1)
  • tag and title(1)
  • towing coverage(1)
  • rental reimbursement(1)

View Mobile Version
Progressive
Foremost
Infinity
Ocean Harbor
Windhaven
Universal Insurance
Citizens Hanover
Mission Statement

Our agents bring 30 years of experience to the table, meaning your time with us will be well spent. We are experienced professionals in this field, and we are happy to put that experience to work in your favor. We offer rates from some of the most respected carriers in the business.


1340 S. Federal Hwy
Deerfield Beach, FL 33441

Phone: (954) 421-9953
Fax: (954) 421-2886


Facebook Google Posts
Home Get A Quote Make A Payment Blog About Us Contact Us

Powered by Insurance Website Builder