If you have a car loan on your vehicle, there is a good chance that your lender requires you to have comprehensive and collision coverage. Lenders require this so that their collateral is protected. If your car is paid off, on the other hand, you might only be required to have liability insurance in order to meet your state's requirements. Even though you might not be required to have comprehensive and collision coverage on your paid-off vehicle, it may still be something that you will want to think about for these reasons and more.

It Might Not Be Too Costly

One main reason why many people opt for liability insurance only for a paid-off vehicle is that it's typically more affordable than having full coverage. However, if you haven't received a quote for comprehensive and collision coverage on your vehicle, you should not assume that it will be too expensive. If your vehicle is older and isn't very valuable, there is a good chance that it will not be very expensive for you to insure. Plus, you have the option to shop around and get quotes from different car insurance companies, which can help you ensure that you are getting your auto insurance for the best possible price. Once you compare your options, you might find that it's more budget-friendly for you to have comprehensive and collision coverage on your vehicle than you originally thought.

It'll Help You if You're Involved in an Accident

Of course, you want to do everything that you can to prevent accidents when you are driving. However, no matter how careful you might be, there is always the chance that an accident could occur. If it does, and if the accident is your fault, then your vehicle might be seriously damaged and you could end up in a bad situation. If you have comprehensive and collision coverage on your vehicle, you can potentially get the money that you need from your insurance company so that you can repair or replace your vehicle.

It'll Help You if Your Vehicle is Affected By the Weather

Not only do you have to worry about the possibility of your vehicle being impacted by an accident, but you also have to worry about other types of damage that can happen to your vehicle, too. For example, your vehicle could be affected by hail damage or flooding. If you have full coverage, then you can help ensure that those types of damage are covered.

Contact an insurance company, such as LA Insurance, for more information.