Full coverage auto insurance helps reduce your financial risk when your car is new and too expensive to replace if something happens to it. Many people start out with full coverage auto insurance when they buy a new vehicle, then downgrade to liability insurance later. Deciding when to make that switch can be a challenge. The professionals at Baldo-Downs Insurance LLC, serving Tuscaloosa, AL, can help. We can answer your insurance questions and help you decide when it’s time to re-evaluate your coverage. Here’s what you need to know.
What’s the Difference Between Full Coverage and Liability Auto Insurance?
Full coverage auto insurance isn’t a single type of insurance but a combination of several coverages, including liability, comprehensive, and collision. When you have full coverage, you’re paying for the highest level of protection available.
Liability auto insurance is the minimum amount of coverage required in most states. It may pay to repair or replace the other driver’s vehicle if you’re found at fault for an accident, but it does not pay to repair or replace your own vehicle.
Why Downgrade Your Auto Insurance?
Full coverage auto insurance costs more than liability insurance. At some point, many drivers conclude that the money spent on full coverage would be better used toward buying a new car or covering repair costs. As cars age, many drivers become less willing to pay for higher-cost insurance because the car’s value is lower. If you no longer have a car loan and your vehicle is older, you may be considering a downgrade yourself.
How Can You Switch Your Auto Insurance Policy?
The professionals at Baldo-Downs Insurance LLC, serving Tuscaloosa, AL, can help you choose a new auto insurance policy, whether that means liability only or a combination of liability and another type of coverage. Call today to learn more.
