While you must have auto insurance if you drive a vehicle, it may not be necessary for you to retain full coverage. Before making any changes that could end up being costly or illegal, however, you should consult an experienced professional for guidance. Fritch Insurance in Beatrice, NE, gladly helps clients determine if paying for a comprehensive policy no longer makes financial sense.

As an independent agency with connections to the nation's leading carriers, the local firm starts with a review of the policyholder's existing auto insurance plan. From there, the following factors are examined to figure out whether it's best to drop full coverage.

3 Factors to Consider Before Changing Your Auto Insurance Coverage

1. The Vehicle's Value

Unfortunately, the value of a car or truck depreciates over time. Full-coverage insurance, also known as comprehensive and collision coverage, may not be needed as the vehicle ages. Instead, some drivers can get by with the minimum liability coverage required in most states. If you're unsure, a professional insurance agent can help determine which policy would be a better fit for an older car.

2. The Car’s Owner

Auto lenders typically require full coverage on the vehicle until the loan is completely paid off. As a result, drivers may not have the choice of dropping their insurance plan. Once all the payments have been made, all liens are released against the vehicle, and you receive the official title, you generally have the option of choosing less expensive coverage.

3. Deductible Changes

If you're stuck with full coverage, you can minimize the premium payments by going with a higher deductible. Before taking this step, knowing the vehicle's value helps determine if it's worth choosing a larger out-of-pocket deductible. Compare the value with how much it would cost for you to pay for damages stemming from an accident. If the vehicle's value is less than the deductible, consider sticking with a lower one.

The good news is, you do not have to be tied to full-coverage auto insurance forever. The team of friendly agents at Fritch Insurance is available to walk you through the process of selecting the best policy for your budget. To get started, call (402) 223-3312 for free quotes. Check out the website to learn about other affordable policy options for your home, farm, or business.