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You should have full coverage on a 15-year-old car if you can’t afford to repair or replace it out of pocket. On the other hand, you do not need full coverage on a 15-year-old car if you own it outright and will be able to pay for the damage without assistance in the event of a collision or other accident.
In most cases, you can think about dropping full coverage once the cost exceeds 10% of your car’s value. So, even if your car is 15 years old, it could still be worth enough that it makes sense to keep the extra coverage. Also, keep in mind that you may not be able to drop full coverage if your car is still leased or financed, since most lenders and lessors require it.
Finally, you should consider your personal financial situation. If you need your car on a daily basis and can’t cover the cost of fixing it, then full coverage is worth it even if the vehicle isn’t worth a lot.
To learn more, check out WalletHub’s guide to full coverage insurance.
People also ask
When should you drop full coverage on your car?
You should drop full coverage insurance on your car when the cost of the insurance equals or exceeds the potential payout, should a covered event occur. You may also want to drop full coverage if you are willing to pay for repairs out of pocket, or if you would prefer to replace your vehicle if it’s damaged.
For example, an older car with high mileage may not be worth costly repairs, and you might want...
read full answer by WalletHub, Financial CompanyDo I need full coverage on a used car?
You do not need full coverage insurance on a used car unless the vehicle is leased or financed. Even though no state requires full coverage insurance, is still recommended for a used car if you cannot afford to repair or replace the car after an accident or other unexpected event. Full coverage is not an official type of insurance, but it usually refers to a policy that includes collision and comprehensive coverage in addition to the...
read full answer by WalletHub, Financial CompanyDo I need to carry comprehensive insurance on an old car?
You don't need to carry comprehensive insurance on an old car, unless you have a financing contract that requires it. Comprehensive coverage becomes less valuable as your car depreciates, so you could drop it. A good way to find out if comprehensive coverage is worth it is to compare the value of your car with the cost of insurance and your deductible.
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