Can I switch to liability insurance only for my 2004 Honda civic even though I'm financing it?

Currently I drive a 2004 Honda civic with over 128,000 miles on it. I currently pay 190 dollars a month for "full coverage". I have had one accident in which I was backing up and hit another vehicle, the driver posted minor bodily injury. I was speaking to one of my colleagues and he was telling me that I could reduce my full coverage to liability because my vehicle is only worth about 2100 dollars in the blue books. So it wouldn t make sense to pay 2,280 dollars in insurance for a car that is worth less. What I'm worried about is what if the financial company finds out? Can I get in trouble? I'm currently 19 years old and this is my first car but I feel like I'm paying way too high in insurance costs. Any feedback or recommendations will be appreciated.

Under the finance agreement, you are bound to carry full coverage. If the lender finds out, you are in default and your car could be repossessed

I don't know where you are, but in Australia where I live. If a car is being financed you are legally required to have full comprehensive insurance, this is to protect the finance company in case of an accident, if you write off the car in a crash, the insurance would first pay off the finance company, and then you would receive the balance

If the car is worth so little, then just pay off the car so you won't be financing anything. Problem solved.

In my experience, in order to find out, you would have to contact your finance company, as it is in your agreement to maintain full coverage

Nope. You agreed to maintain full insurance coverage for the duration of the loan as a condition of borrowing the lender's money. Not carrying the required insurance coverage could put your loan in default, and your car repossessed.

Call the financing company.

Not until it is paid for, this is in your loan agreement

Read the finance agreement. That's where you'll find the answer to your question.

There's no statutory law that says you need to carry 'full' coverage on a financed vehicle, not anywhere in the world. That requirement, if it exists, will be spelled out in your finance contract wording.

If your vehicle was used as security on the loan, the condition to carry Collision & Comprehensive coverage will be there in the contract. If you used something else as security on the loan, it won't. That condition is only there when the lender needs to protect their investment.

If you have that condition in your loan agreement, it's not a question at all. You agreed to carry 'full' coverage until your loan is paid off, and you can't un-agree to it now. The lender gets a copy of every update you make to your insurance policy, so they will find out if you drop the optional coverage. Then they'll send you a notice that, until you reinstate your primary coverage, they're adding "lienholder's contingency coverage" to your vehicle and sending you the bill. Their contingency coverage only covers them (not you) if the vehicle is damaged, and it's as expensive as hell. And if you stiff them on the payment, they file for repossession.

This is why you want to never take insurance advice from buddies.

You probably signed something that said you would carry full coverage insurance. So just go with that.

How can I express my incertitude as to your posting. You claim to work in a bank but you can't ask the experts at your place of employment as to this insurance issue? You also appear not to realize, and I must believe you are a high school graduate, that the names of cars are all proper names. Honda Civic is correct and "I'm" is NOT an approved contraction but "I'm" happens to be. Since you wish not to take time for the apostrophe, why not write "I'm?" It is just one more strike. I'm also quite positive that no one has answered to you as to the financial exposure of using liability coverage for that means that if and when you crash this Honda Civic YOU before responsible for the repairs in addition to the loan balance. If you owe $2,000 and the car is totaled then you owe that amount plus you shall have to buy another vehicle PLUS insurance. If you think car insurance is expensive then perhaps you need to consider a bus pass or a bicycle or scooter as transportation no matter the inconvenience. The term Blue Book is a proper name as there's no "blue books" as you wrote and the most basic rule of grammar details that All punctuation marks go immediately after the last word. Like so many that copy the mistakes of others when there's a quotation mark at the end of a sentence, the quotation mark goes after the punctuation mark. Therefore, "I believe you need to know more as to car insurance." is correct and not "insurance". With the period after. So many more errors but I shall dispense with those.