I just paid off my late model car. Should I continue to carry full coverage auto insurance?

All states require drivers to carry the state minimum auto insurance coverage. The coverage levels may vary from state to state. However, all drivers must carry auto liability insurance to drive or operate their vehicles legally. Our team at Assure-Us is dedicated to helping Miami Beach, FL drivers understand and explore their insurance options and legal requirements. 

State Auto Insurance Requirements

Florida requires that all drivers carry auto liability insurance that includes a minimum of $10,000 for personal injury protection and $10,000 for property damage liability coverage. All drivers must have this form of auto insurance before they can legally drive in the state of Florida. 

I just paid off my late-model car. Should I continue to carry full auto insurance coverage?

Once you pay off your auto loan, you are no longer required to carry full insurance coverage. However, according to Florida state law, you are still required to carry auto liability insurance. Also, you may want to consider whether or not liability insurance is enough for you, especially if you have a late-model car. If your vehicle’s repair is too expensive to pay out of pocket, it may be best to carry more than liability coverage. 

For the most part, the value or potential payout for your late model car is probably greater than the cost of your full coverage auto insurance. If this is the case, auto insurance is beneficial for you. Typically, full coverage auto insurance is usually not as beneficial when the payout or cost of your totaled car is equal to or less than your insurance premium. This is another way to determine if full auto insurance coverage would be beneficial for you. If you have questions about auto insurance, we can help. Call us. We’re standing by.