Full Coverage Insurance

The caller has the cash to pay for a car and wants to know if it's okay to drop the full coverage insurance.

QUESTION: Eric has heard that if you can pay cash for a car, then it’s all right to drop full coverage insurance. Is that true? Dave gives his perspective.

ANSWER: That’s been around for many years, and I’ve considered it. I drove a jeep. I have kept full coverage on all of our vehicles, and I’m all right with it. You need to easily replace the car with cash before you even consider it.