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.
- 18-29
- 30-39
- 40-49
- 50-59
- 60-69
- 70-79
- 80+
Consider the 10% rule
/images/2024/04/22/homepage-of-kelley-blue-book.jpg)
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
/images/2025/09/04/japanese-made-car-adobe.jpg)
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
/images/2025/04/18/car-dashboard-and-speedometer-inside-car.jpg)
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.
Resolve $10,000 or more of your debt
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1 <p>Clients who are able to stay with the program and get all their debt settled realize approximate savings of 45% before fees, or 20% including our fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.</p>
Auto insurance is becoming a hardship
/images/2025/09/04/japanese-made-car-adobe.jpg)
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
/images/2023/02/03/woman_calling_road_assistance_after_the_car_collision.jpg)
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
/images/2025/05/20/woman_teaches_a_foreign_language.jpg)
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
/images/2025/08/21/happy-woman-driving-a-car.jpg)
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
/images/2025/09/04/car-insurance-concept-adobe.jpg)
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
/images/2025/09/04/deer-doe-crossing-road-adobe.jpg)
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.
Get a protection plan on all your appliances
Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.
Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.
For a limited time, you can get your first month free with a Single Payment home warranty plan.
Bottom line
/images/2025/06/17/man-signing-car-insurance-document.jpg)
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
- Quickly find the perfect rate for you
Subscribe Today
Unlock the Best Banking Deals and Bonuses
From high-yield savings accounts to cashback checking and sign-up bonuses, we bring you the best banking offers to grow your money smarter.