Typically, when we buy a car it is through a financing plan and that firm holds the title to the car. Once the car is owned outright the lienholder’s rights are no longer relevant to your insurance coverage and decisions. In fact, it is possible to drop both collision and comprehensive coverage and carry liability insurance only. While this is something that is possible and completely legal, it is by no means the best route to take in every situation. JC Demo Insurance Group is here to guide their clients in the greater Matthews, NC area through the insurance-buying process; whether they own their vehicle outright or not. Insurance needs will vary between the two situations.
Drivers often drop their collision and comprehensive policies immediately once they own their vehicle outright. In many instances, it may make sense to lower the coverage amounts, but there are many reasons to keep collision and comprehensive coverage in place. We recommend that remain aware of the depreciated value of your auto as that is what is typically used as the replacement value of the car in the event that it is totaled. Lowering the limits of your coverage will keep you protected, with insurance in place, but you will not be over-insured. Ultimately, the key decision is finding the coverage levels that make the most sense for your vehicle and your personal situation.
If you are unsure what the appropriate coverage levels are now that you own your vehicle outright, it’s time to sit down with one of the knowledgeable insurance agents at JC Demo Insurance Group. We are proud to serve the auto insurance needs of our friends and neighbors in the greater Matthews, NC area and look forward to working with you soon!