By Marcus Bell · Editor
Published
Answer in brief
Dropping collision and comprehensive on an old car is sensible. Dropping liability limits to the state minimum is not—it saves little and exposes everything you own. Keep 100/300/100 and UM; drop the coverages for the car itself.
"I just paid off my 2014 sedan. Can I drop to the state minimum now to save money?" — reader in Missouri
You are asking two questions at once. One has a yes; the other has a firm no.
Yes: drop collision and comprehensive if the numbers say so
A 2014 sedan is probably worth $5,000–$8,000. Check what you pay for collision and comprehensive; if it is 10% or more of the value, dropping collision is reasonable, and you might keep comprehensive alone. See when to drop full coverage.
No: do not drop liability limits
Missouri's minimum is 25/50/25. Dropping from 100/300/100 to that might save $100–$200 a year—and leaves you personally liable for anything above $25,000 per injured person, which a single serious injury exceeds. The money saved by dropping collision is real; the money saved by dropping liability is small and dangerous. See limits to choose.
Guides referenced in this post
Guide
What Liability Limits to Choose
How to pick bodily injury and property damage limits: the state minimum vs 50/100/50 vs 100/300/100, what each protects, what each costs, and when an umbrella policy makes sense.
Guide
When to Drop Full Coverage and Go Liability-Only
The signals that it is time to drop collision and comprehensive: car value, premium share, deductible, savings, loan payoff, and how to make the change without a gap.