Reader’s Question:
Does full coverage auto insurance on a new car automatically change to liability only after a couple of years or does the insurance company has to call to make the change after a few years? I live in Hoover, AL.
Stewart
Hoover, AL
If you wish to make any changes to your car insurance policy such as dropping your comprehensive and collision so that you only have the state required liability coverages you would need to tell the insurance company, your insurance provider, of the change. Car insurance coverages do not change automatically after a few years.
An insurance company does not make changes to your auto insurance policy in Hoover, AL without you requesting it. In addition if you are still paying for the new vehicle after a few years it is unlikely that you could lower your insurance coverages from from full coverage to basic insurance liability. Normally your lien holder requires you to have the full coverage (comprehensive and collision coverages) on the car since it their asset until you pay it off.