Call Us 256-831-8691 ☰ ˟
Logo
Oxford: 256-831-8691 Athens: 256-417-6684
  • Home
  • Get A Quote
    • Automobile
    • Business & CommercialImage of right arrow
      • General Liability Quote Form
      • Business Owners (BOP) Quote Form
      • Workers Compensation Quote
    • Commercial Auto Insurance
    • Contractors Insurance
    • Farm
    • Homeowners
    • Life
    • Motorcycle
    • Recreational Vehicle
    • Renters
    • Watercraft & Boat
  • Blog
  • Resources
    • Refer a Friend
    • Insurance Glossary
  • About Us
    • Our Locations
    • Privacy Policy
  • Contact
    • Contact Us
    • Join Our Newsletter
Home > Blog > Do You Need More Than Liability Insurance on Your Old Car?
MONDAY, MARCH 14, 2022

Do You Need More Than Liability Insurance on Your Old Car?

A brand new car fresh off the lot is a big investment. The value of the car is much higher than it will be in a few years. Plus, you may have a loan on the vehicle or you may be financing it. Either way, the holder of that loan wants to ensure their investment is protected. In most cases, the lender will require you to carry comprehensive car insurance on the vehicle. But for those who have an older car, it may no longer be necessary to maintain the highest level of auto insurance coverage. When can you drop your policy limits safely?480955576.jpg

About Liability Insurance

Most people need to maintain liability insurance on their vehicle to remain in compliances with state laws. It helps protect other drivers on the road by covering any property damage, medical bills or other losses individuals face when you've been involved in an accident that you were at fault for creating. However, it provides no coverage to your vehicle.

When Should You Consider Downgrading Your Policies?

Aside from liability insurance, you are not legally obligated to maintain other types of car insurance plans. While it makes good financial sense to do so in most cases, you may be able to reduce your coverage and costs by downgrading some of your coverage. If you still have a loan or are leasing the vehicle, you may be under contract to maintain your full coverage.

Before you downgrade, consider these factors:

  • If you were involved in an accident today, would you be able to pay for the repairs necessary on the vehicle out-of-pocket or purchase a new car to replace this one?

  • Do you feel your car is inexpensive and easily replaced in the instance of significant damage?

  • Have you invested heavily into your vehicle with customizations that you would not wish to lose should you be involved in a significant accident?

Keep in mind that, The Insurance Information Institute states that in 2014, the average collision claim filed against car insurance policies was $3,160 and the average comprehensive claim was $1,547. If you don't feel comfortable making these payments in the event of an accident, maintain your auto insurance.

Review your coverage today. Call Mark Lee Insurance at 256-831-8691 for more information on Alabama auto insurance.

Posted 4:49 PM

Tags: auto insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2022
  • 2021

  • coverage(3)
  • life insurance(3)
  • insurance(3)
  • farm insurance(2)
  • auto(1)
  • car(1)
  • auto insurance(1)
  • homeowners insurance(1)
  • homeowners(1)
  • car insurance(1)
  • home insurance(1)
  • ranch(1)
  • policy(1)
  • farm(1)
  • bop insurance(1)
  • livestock insurance(1)
  • business insurance(1)
  • livestock(1)
  • equipment(1)
  • accident(1)

View Mobile Version
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Home| Get A Quote| Customer Service| Blog| About Us| Contact

Ardmore Location

30103 Ardmore Ave | Ardmore, AL 35739
P: Coming Soon

Oxford Location

320 Snow Street, Ste. A | Oxford AL, 36203
P: 256-831-8691 | info@@markleeins.com
Social Social Social
Logo

Powered by Insurance Website Builder