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If you have full coverage. A lot of people don't have full coverage. Also having ridiculous repair costs will eventually drive cost of coverage up.
Most banks require a full coverage and a deductible no greater than certain amount, when you finance the car. Once the vehicle is paid off, the owner can choose to switch the insurance coverage to the minimum amount required by law (liability only coverage). You'll be responsible for all the repairs yourself if you're involved in an at-fault accident. Like I mentioned before, if the repair costs of car stay high, the insurance companies will adjust the premium accordingly. They're not in the business to lose money.
Originally Posted by 703
Full coverage can be declined - commonly due to things like lapse in payment (sometimes life gets too busy), some one in your family/extended family drives your car and they are not covered under policy, speeding (such as exceeding the speed limit - easy to do) etc.
Now you're just nitpicking. It's obvious that you won't be covered if you don't pay your premium.