Ask These Before Lowering Your Car Insurance Coverage

Consider these questions before dropping full coverage auto insurance.

There can come a time when you feel that you can lower your car insurance coverage. You should know exactly what coverage you’ll be dropping, and how this impacts your policy and protection. In order to determine if you should lower your insurance, consider these five questions.

What am I giving up?
Typically, full coverage is comprehensive, collision, and liability coverage on one policy. It tends to not include extras like towing and labor, roadside assistance, rental car coverage, and other add-ons. Therefore, what some people consider ‘full’ is actually just the bare minimum. When full coverage is removed, your policy will empty to leave liability coverage. This means that you have no coverage for your vehicle at all.

Do I owe on the car?
Determine if you’re even allowed to drop comprehensive and collision coverage. Newer vehicles that are financed are often required to have full coverage from the bank and lienholder until the car is paid for.

What’s the value of my car?
Establishing the value of your car will help decide if it is worth less than the policy. A car depreciates with age, and more often than not, repairs cost more than the value of the vehicle. Use online sources to find an estimate of your car’s worth.

How much is collision coverage costing me?
Collision coverage provides a big portion of your monthly bill, as property damage is one of the highest costs in an accident. If you’re a safe driver, collision coverage may be the one to drop first as you’re still covered for freak accidents.

How much is my collision deductible?
You can keep collision coverage and peace of mind by raising your deductible. This will lower overall insurance rates while keeping your policy. However, when doing this, be sure if you raise your deductible to $1,000, that you can actually pay $1,000 out of pocket, should you need to cash in on your policy!

Talk to an experienced insurance agent for complete understanding of your auto insurance policy, and ways to save. Contact All Nevada Insurance, located in Las Vegas Nevada, to receive a policy suitable for you and your needs!