Many people are happy with their rides regardless of its age. Not everyone is looking for or need the latest model. It may meet their needs or they may be planning to change it in a year or two. Most people may be keen for an upgrade but insuring older automobiles can be cheaper and that alone can serve a purpose. This post will look at several ways of saving on premiums with them.
Your circumstances and preferences will play a key role in determining how much coverage you would buy for them. For example, they can serve well for the purpose of bringing rates down to affordable levels for a youngster or a risky driver, who just had a serious at fault accident or traffic violation charge.
General advise is that you can drop Collision and Comprehensive coverage for a car below $4,000, especially if you have some money in the bank just in case. However, it may be better to keep paying the monthly car insurance premium if you have no money to bail you out if something happens to your automobile.
Another option is to increase deductibles and hope that it will have the desired effect of reducing costs. In that case, you will not be able to make claims for small damages. But you would be compensated if the car were totaled. For example, increasing deductibles from $250 to $500 would reduce chances of making a claim on a car worth $2,000. But you would get about $1,500 if it is a total loss. Generally, even a small dent can write them off anyway.
Living in a big city would mean higher risk of getting involved in accidents. On the other hand, dropping Collision and Comprehensive can make expensive premiums affordable. You can only do that when you can afford to lose the car you own. In that aspect, it may be a blessing that it is old and worth less.
Getting a few vehicle insurance quotes for various levels of coverage would help in determining the course of action. For example, get one for Liability only and another for full coverage. Depending on the price gap you may see the point in this practice or prefer to pay a bit more now and keep the options of making a claim open.
Usually, these decisions are highly subjective and personal. However, a Liability only policy may make sense when you buy insurance for older cars. This decision would be easier when you have access to another vehicle or have a reliable public transport in your area. On the other hand, you may have to think twice when you are living in a rural area and a personal vehicle is the only means of transport.
Furthermore, insurers take the age and value of an automobile into account anyway and offer you good discounts. So, don’t assume anything before you check the price difference between liability vs. full coverage auto insurance. This gap can be very open in some states like Montana and Arkansas or narrow like New York. This would certainly have a bearing on the subject.
Of course, the safer option would be to keep the protection on even though it means you pay a little more. Policy requirements are as individual as people. Some people would see the point in accepting the future risks and choosing to spend less now. This may actually increase the choices because old cars can breakdown for good before they have an accident. In that case, you could use the premium savings towards the replacement costs.
Spare a little time to learn as much as you can and get quotes as discussed above. This will help you make an healthy decision regardless of the values involved.