Many people ask whether or not they need comprehensive coverage on their auto insurance policy. Unfortunately there is no set in stone answer, and the answer depends on your vehicle and your finances.

If you currently making payments on your vehicle your lender will almost always require full auto insurance coverage. Once you finish making payments on you car you will be able to switch to less coverage if you chose. Just because you can get less coverage doesn’t mean it is always a good idea.

The general rule is once a car is about 8 years or older you can probably dump the full coverage, as statistically speeking it will be cheaper to pay out of pocket in the event of a collision than it would be to pay a higher insurance premium every month. Although you may save money in the long run, many people cannot pull together a couple of thousand dollars on short notice to replace their vehicle.

Generally if your yearly insurance premiums are over 10% of the car’s value, then full coverage could be a waste of money. When speaking with your insurance broker to get an auto insurance quote you should see if you can find middle ground coverage- not quite full coverage, but not the minimum either.

No matter what, in the US you are required to at least have liability only auto insurance coverage. If you are not sure what coverage you need, contact Missouri auto insurance agent Dan Bumiller at (314) 475-5637.