Auto financing comes with a strict set of guidelines enforced by the financial institution that provided the funds for you to buy your car. When you have a loan on your car you have to carry insurance coverage levels that are determined by your bank. After you have paid off your car loan you might be wondering what changes you should make to your car insurance policy. Residents in the greater West Hartford, CT area can turn to the professional agents at ALLConnecticut Insurance to find out answers to these questions and more. Owning your car outright can allow you to carry lower coverage, but that’s not always the best way forward.
Insurance Options When You Own Your Car Outright
When you own your car outright you no longer have to adhere to the stipulations put in place by your lender. Many car owners consider this an opportunity to drop their coverage to the bare minimum, which can often cause additional headaches! The main consideration is the replacement value of your vehicle. Once you have your car paid off it is likely a few years old, and it may be difficult to find a replacement within the current value. That is just one reason why dropping down to a basic policy can sometimes be a mistake. You will still want to have collision and liability coverage, and you will also need to consider how to cover the value of your car.
Wondering how paying off your West Hartford, CT auto loan has changed your car insurance needs? The team at ALLConnecticut is here to help! Call or stop by, and we can walk you through the car insurance policy options that are now available to you.