When you buy a new car and borrow the money, the lender will require you to have full coverage. They are simply protecting the collateral. However, if you have paid off your car loan, or already have the title to the car, you are only required to have the minimum insurance coverage specified by the laws of your state. If you have full coverage right now, you may be thinking about dropping the collision and comprehensives part of your policy to save money. But this is not always a good idea. The following are a few things to consider.

You may still need some comprehensive coverage

Generally speaking, collision pays for damage to your car when getting into an accident that is your fault. But there are other considerations. At the top of the list is theft. Even a person with a car of low value should consider theft coverage. It will not likely be expensive for an older model car, but you will be protected. Your car may not be popular on the market, but it may have value to car thieves for the parts. Comprehensive can also cover damage to your car from the environment such as a falling tree branch, fire or vandalism. This type of damage is outside of your control, even for a safe driver.

You have significant assets

If you decide to go with a minimum coverage policy, you should also know the dollar amounts of liability and property damage in your state. These are the maximum amounts that the insurance company will pay for a policy. The problem is that these amounts may be too low given your assets. Just because the compensation that an injured person is demanding goes beyond the policy limits, does not mean you are off the hook for liability. An attorney can still go after your assets. For this reason, you should take a look at what you own, and calculate how much you need to protect yourself from a lawsuit.

Less coverage with your current provider may not be the best option

Whatever company you are currently insured with, you should get additional quotes from other companies for the coverage you want. Naturally, you will save money by dropping some of your coverage, but that doesn't mean that you are getting the best deal. Get a quote for a policy without the coverage you no longer want, and then get quotes from at least three other companies with the exact same coverage. In all likelihood, you will save more money by switching insurance companies along with the reduced coverage.

In the end, saving money on car insurance is not just about getting quotes. Although this helps, you must first determine if you have the right policy at this time. Contact a company like Martin Insurance Company to learn more.