When should you switch from full coverage to liability?

You should switch from full coverage to liability when you can afford to replace your vehicle on your own w/out the help of an insurance settlement, should your vehicle become a total loss.

No. The coverage employer will notify the lender which you have dropped the entire coverage and that makes you in default on your guy or woman loan settlement. The lender then will the two tension place coverage on your automobile, that's somewhat costly and in basic terms protects the lender's pastime, or they're going to repossess your automobile for failing to stick to the settlement words you agreed to. in case you probably did no longer desire to pay for finished coverage coverage, you may desire to no longer have used the financial corporation's money to purchase the motor vehicle.

If it gets hit by an uninsured driver, are you ok if no one pays you to replace it? If it catches on fire and burns, are you ok if no one pays you to replace it?

It's more about, can you afford to replace this car if something happens to it. If the answer is yes, and the car is paid off, you don't need full coverage. If the answer is no, or it's not paid off, you need full coverage.

When you can easily afford to replace your car if you total it. If you couldn't go out and buy another car today if you had to, then don't drop your collision coverage.

When the note is paid off and the vehicle's value is under a couple of thousand dollars.

scott is right... if you still need full coverage, raise your deductible to save a little money on your policy