When can I drop full coverage on a used car?

Answer by  MarkWatrous (729)

You can drop full coverage on a used car when you have satisfied this one condition: you must be able to afford purchasing another car with cash on hand. If you cannot satisfy this condition, keep the coverage until you can.

Answer by  mysteriousgrl25 (26)

You can drop full covereage as soon as the vehicle no longer has a lender listed as loss payee for the vehicle. Any time there is a lender who has a financial interest in a vehicle they require the borrower to carry comprehensive and collision coverage. Once the loan is paid off, the borrower is free lower coverage.

Answer by  CFERGY21 (49)

If you purchased a car on a loan through a bank, you may drop full coverage as soon as you pay off the loan in full. Most if not all banks will require you to keep full coverage for the duration of your loan.