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If you have a loan on your auto, more times than not, the language in the loan agreement specifically requires full coverage to be carried for the vehicle until it is 100% paid off. Subsequently, if you do not have a loan out on your auto, and it is paid for, there are other factors you will need to think about to determine if you should keep full coverage or drop down to liability only coverage.
Run The Numbers
If you have automobile insurance in Welland and are thinking of dropping your auto policy down to liability only, this decision should not be taken lightly. What you end up saving in the beginning from dropping down, can come back and bite you tenfold. Especially, if you get into an auto accident and hit the wrong vehicle, such as a $95,000 automobile, carrying a family for 4, and you injury all of them. Liability only insurance would not help you in this situation very well.
When a policyholder is faced with this kind of decision, they must look at all the numbers across the board. Here are some key factors that must be taken seriously before the decision to drop down to liability only from full, has been made.
- Number 1 Factor – Age: If your automobile is over 10 years old, it is said this automobile would be a good candidate for a liability policy. However, if your 10-year-old car is still in immaculate shape on the inside and outside, keeping full coverage on this auto might be the best choice.
- Number 2 Factor – Mileage: This is also a great key factor. All autos that have more than 100,000 miles on them have a significantly low dollar value on the open market. So, putting liability only on such a vehicle could be the best decision in this scenario.
- Number 3 Factor – Loan– If you have a loan out on your auto, most leasing contracts state full coverage must be kept on the car until fully paid off. However, if you own the car, and there is no loan on the vehicle, this could be another deciding factor on if you want liability only or full coverage for your vehicle.
- Number 4 Factor – Replacement Cost – If your car is in the type of shape that if you were to get into a wreck, you would not even waste your time and money trying to get the car repaired, then this auto is a good candidate for liability. However, if this car still has medium to high dollar value, is in good shape, you’d get it repaired if you wrecked it, this car might be good candidate to keep full coverage insurance on.
Do not make this very important decision in the dark. Making the wrong decision here, could cost you thousands of dollars down the road.
Run the numbers and look at your vehicle’s age, loan status, and replacement cost. Following these four factors for your specific situation, and your decision will become crystal clear.
To learn more about Welland auto insurance, contact the experts Duliban Insurance Brokers at 855-385-4226. Our licensed professionals will be happy to answer any questions you have.
Welland auto insurance is required by law. However, the law does not require a driver to carry full coverage auto insurance, just at least liability. However, the decision to carry full coverage versus liability coverage is one that falls on the policyholder, and what other variables they have in their situation.
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