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Foley, AL 36535

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Southern Risk Associates Blog

I just paid off my car. Do I still need full coverage auto insurance?

Car insurance is both a necessity and a luxury. Drivers in every state are required to carry auto liability insurance. However, aside from state laws, some drivers must have more coverage in addition to liability insurance. For example, anyone financing their vehicle must carry auto liability insurance plus other forms of auto insurance. Our Foley, AL team at Southern Risk Associates is committed to helping drivers get the coverage they need to suit their unique situations.

What are the minimum insurance requirements needed to drive in Alabama?

Alabama’s drivers must carry at least $25K in auto bodily injury liability coverage per person and $50K for two or more people. Drivers must also have $25K in property damage coverage. Of course, drivers can invest in more coverage, but these are the state-required minimum amounts.

I just paid off my car. Do I still need full auto insurance coverage?

Once you’ve paid your auto loan in full, you are no longer required to have anything more than the state minimum auto liability coverage. However, there are circumstances when it’s best to maintain full coverage. The amount of insurance you carry should be directly related to your car’s value. Once your premium exceeds the value of your car, you should eliminate full coverage auto insurance. Your car’s value will likely depreciate if you’re in a car accident. This means that your car will be "totaled" or considered a total loss. Newer cars benefit from full insurance coverage because their value often exceeds their insurance premiums. If you have questions about auto insurance, call us. We’d be happy to help you explore your options.

Servicing States

  • Alabama
  • Mississippi
  • Georgia
  • Florida

Why Work With Us?

  • Locally owned and operated
  • Works with multiple carriers
  • Combines policies for best rates
  • Customer friendly services
  • Have access to your auto ID cards anytime!


Partner Carriers

  • Alcon insurance services
  • American Modern
  • Amwins
  • Chubb
  • Guard Insurance
  • National General
  • Openly
  • Orchid
  • Orion 180
  • Progressive
  • RPS
  • SafeCo
  • Sagesure
  • State Auto
  • Swyfft
  • Traveler's
  • Universal Property