Car insurance coverage should never be fixed; there are times when you need to increase your coverage and times when you need to lower your coverage. Here are some of the circumstances where decreased coverage may make sense:

Your Car Has Broken Down and Is Unroadworthy

You don't need serious insurance coverage for your car if it's broken down and shouldn't be driven. This is particularly true if the repairs will take some time—say you don't have the repair money or you have an alternative car and you aren't in a hurry. In such a case, you can maintain only liability coverage for the car. The rest can wait until after the car is fixed and becomes roadworthy again.

You Are Unable To Drive

Full insurance coverage for the car is also not necessary if, for one reason or another, you are not able to drive. An example is if you are seriously injured in an accident and you are unable to drive for some months during recovery. In such a case, you only need to maintain minimum coverage for the car until you get well and can drive again.

The Only Other Option Is To Cancel

It also makes sense to reduce coverage for the car if the only other option is to cancel your insurance coverage. For example, if you don't have the funds for full coverage and you are thinking of dropping coverage completely, you should at least buy the legally required minimum. That way you don't introduce a gap in your coverage, and you also get to satisfy the government's auto insurance requirement. In the long run, that will be might better for you financially, since your rates won't rise when you eventually buy full coverage. You also won't run into trouble with the authorities by driving without insurance.

You Will Be Spending Time Overseas

Lastly, it also makes sense to reduce coverage for the car if you'll be spending some time overseas and the car will mostly be in the garage. For example, if you have taken up a temporary job posting overseas or you are on extended vacation, it makes no sense to pay full insurance coverage for your car if no one else is using it while you are away.

In most cases when you think you need to terminate your auto insurance coverage, a keen analysis will tell you that reducing coverage is a better option. This is because, with reduced coverage, you can still drive without incurring legal penalties, you don't incur a gap in your coverage, and you are still protected against some risks. For more information, contact a company that offers auto insurance services.