Insurance might be one of the most confusing things associated with car ownership. What to buy, how much to buy and where to buy it from can all be questions that are hard to answer. Complicating matters is what exactly to do when the last payment goes through on a car and full coverage insurance is no longer required.

Should you keep full coverage or drop it to save yourself a big chunk of change on a monthly basis?
The answer to that question depends on a few important factors. Remember, full coverage is what will help you replace your vehicle in the event of an accident where it is totaled out.

So, what do you need to pay attention to? These points can help guide the decision to keep paying out or not:

• The value of the car – If your car is still worth a fair amount in Blue Book value, it could be a good idea to keep on paying for full coverage. The monthly payment will simply help protect your investment should an accident happen.

• Your ability to purchase a new vehicle – If you have the resources to replace your car with a reasonable amount of ease if it is stolen or damaged in a crash, paying out monthly for extra coverage might not be worth it.

• The monthly price – If you are paying out enough on a monthly basis to notice a big difference by dropping the coverage, you may want to consider going with the minimum. You can take the payment that would have gone on insurance and put it toward covering yourself for a new vehicle.

Full coverage insurance can provide important protection, but it is not always needed. Consider your financial situation, the value of the car you are protecting and then make the decision to keep the coverage or not.