How do insurance needs change once a vehicle has been paid off?

Owning a vehicle outright is a goal for many people in the greater Minneapolis, MN area. But something that you may not consider when striving for this goal is the impact that it will have on your auto insurance. The team at Calhoun Risk Management is here to support you in this goal and let you know the facts when it comes to insuring a vehicle that you own. If you’re getting close to paying off your car or truck, come talk to us and find out what changes you may need to make to your insurance policy.

Insurance Options for Your Non-Financed Vehicle

Many people drop their insurance to the lowest possible level once the vehicle is paid off. Financing companies typically require that a certain amount of coverage be assigned to the vehicle to protect their interests. While it may be tempting to drop below those levels and carry the minimum amount possible, it could be a decision that has future negative consequences. 

You will need to make sure that you have adequate insurance to repair or replace your vehicle should be involved in an accident. With minimum insurance coverage, you may have to replace your paid-for vehicle with something that is less reliable than what you currently have. Meeting with a knowledgeable agent can help you determine what policy types and levels are appropriate for your new situation. Paying off your car is an exciting event for everyone!

Have you reached your goal of paying off your vehicle? It’s important to review your policy and ensure that it contains the protection you need. If you’re in the greater Minneapolis, MN area, call or stop by Calhoun Risk Management today and learn more about the available options.