Saving & Spending Home & Auto

9 Signs You Don’t Need Full Coverage Car Insurance (And Can Save Hundreds)

You could save hundreds of dollars each year by making a change.

300,000 car odometer, high mielage
Updated Sept. 8, 2025
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No matter how long you've been driving, everyone wants to save money on car insurance. Once your car reaches the 10-year mark, it's likely a good time to decide if you still need full coverage.

After all, full coverage car insurance can run more than $2,500 per year, compared to about $800 for minimum coverage. If you're wondering whether to scale back, here are nine signs it could make sense.

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Consider the 10% rule

sharafmaksumov/Adobe homepage of kelley blue book

A simple rule of thumb: drop collision and comprehensive when your annual premium exceeds 10% of your car's actual cash value.

Start by checking your car's market value on Kelley Blue Book or a similar site. Take 10% of that number and compare it to what you pay each year for collision and comprehensive coverage. If your premiums are higher, it may be time to drop full coverage.

Your car is worth less than the cost of full coverage

Aleksandr Kondratov/Adobe Side view of a Japanese-made car

If you've already figured out how much your car is worth, then it's pretty easy to compare that value to the cost of full coverage.

If your car is worth less than you're paying, it's probably a good idea to think about dropping full coverage on your car and investing that money elsewhere instead.

You have a high-mileage car

uladzimirzuyeu/Adobe car dashboard and speedometer inside car

You may not need full coverage if you're driving a car that has lots of miles on it, especially since the value of the vehicle drops as your odometer reading rises. In general, older cars that have tons of miles on them don't need the protection of full coverage.

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Auto insurance is becoming a hardship

Aleksandr Kondratov/Adobe Side view of a Japanese-made car

You may need to take a look at your budget and see if auto insurance is becoming too much for your finances. While you want to have good coverage, it may be wise to balance affordable auto insurance with financial protection in case you're in a crash.

If you have concerns, you could talk to your insurance agent to see what options are available that won't significantly increase your risk level.

You're open to a higher level of risk

rh2010/Adobe woman calling road assistance after the car collision

If you know you have a high level of risk tolerance and don't mind taking on the financial burden of paying for accident repairs, you could lower your insurance coverage and save some money.

You don't drive a lot

galitskaya/Adobe woman teaches a foreign language

This sign might seem obvious, but if you don't drive a ton, perhaps you can save money by dropping full coverage.

Logically, if you're not putting many miles on your car, you have a lower risk of damaging it than a driver who commutes each day.

You're planning to keep the car for another decade

pikselstock/Adobe happy woman driving a car

If you have a 10-year-old car that you plan to keep around for another decade, one idea is to drop to minimum coverage now and put that money from saved premiums into high-yield savings accounts or other options.

You could then build up that money to put toward your next car. This may make a great deal of sense because you probably won't receive a huge payout or trade-in value when you eventually need a new car.

You're covered on another policy

Jakub Krechowicz/Adobe Small silver car covered by hands

Here's an easy out: you could drop full coverage if your vehicle is insured on another policy. You likely don't need collision or comprehensive coverage if your car is covered on a family member's existing policy.

Keep in mind, your car can usually only be insured on a family member's policy if it's kept overnight at their address.

Covered events aren't common in your area

Carol Hamilton/Adobe deer doe walking on road through morning fog

Think about how often events like natural disasters or collisions with animals occur in your area. Comprehensive coverage can protect you from those events.

If they're not likely to happen in your area, perhaps you can drop full coverage on your older car.

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Bottom line

Phushutter/Adobe man signing car insurance document

The decision to drop full coverage on your car is one that takes some careful thought. You need to think about the car's value and your future automotive plans. While you may be able to save hundreds of dollars a year, it could come at a significant risk if you drive a lot and have a valuable car.

If you decide it's not quite time to drop full coverage, you could also consider shopping around for a new insurance company. You may find a deal that saves you money without losing coverage you can count on.

  • You could save up to $600 with some companies
  • Compare dozens of providers in under 5 minutes
  • Fast, free and easy way to shop for insurance
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