Reader’s Question:

I just paid my car off could my full coverage be lower?

Bill

Chicago, IL

Congratulations on paying off your car so now you own your car and no longer having a lease holder or a lien holder to answer to. Without having a lien holder to mandate the type of insurance you need on the car any longer you can decide on what car insurance you want for your car, beyond the state minimum required coverage.

You may be surprise that the cost of these optional coverages are not needed because of the age or condition of your car and therefore may decide to remove them from your insurance policy or you might instead want to change the deductibles to a higher amount, and lessen the premium rate, and keep the coverages.

It is a personal decision to make depending on your insurance needs and financial situation for your particular car whether to keep physical damage coverages once you no longer have a lien holder requiring you to do so.