"Full coverage" auto insurance is a common industry term that could have different meanings to various insurers and agencies. This is one of the reasons you should be careful before dropping full coverage on an older vehicle. Taake Insurance Agency in Columbia, IL, recommends you ask yourself—and your agent—three important questions before you end this coverage.

What to Know Before You Drop Full Coverage

1. What Exactly Is "Full Coverage"?

Usually, full coverage comprises of both collision and comprehensive coverage that pay for losses if the car is damaged while on the road (collision) or suffers a non-collision incident, such as theft, fire, flood, or vandalism (comprehensive). However, depending on the insurer and agency, it might also include uninsured or underinsured motorist coverage, which you might prefer to keep.

2. How Much Will You Save?

Before dropping auto insurance coverage, make sure you know how much you'll save on premiums. If it's a considerable amount, it might be worth the risk of having to pay all your own repair bills when the car suffers damage. If it's only a few dollars, you might prefer to keep full coverage and continue paying the additional amount.

3. What Are the Risks?

Before making changes, you should know what the risks of dropping coverage are. What is your car worth and how much could you collect from your insurer if the car is totaled? A car worth only a few hundred dollars is unlikely to need full coverage, but if it's still worth several thousand, you must weigh the risks against the savings.

If you're thinking about making changes to your auto insurance, contact Taake Insurance Agency in Monroe County to get a quote. They've been in business for more than 40 years, so they have the skills and know-how to find optimal coverage for you at the best rates. Visit them online or call (618) 281-7656 to learn more.