Insuring Older Cars For Less
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Do you have a vehicle that is more than eight years old? Do you feel like you are paying way too much for your coverage? If this sounds familiar, you can take steps to lower the cost of your premiums, while still maintaining quality coverage. Insuring older cars for less is possible if you follow some basic strategies. Older vehicles have vastly different values than new automobiles. For example, a used 2003 Hyundai Sonata might be worth $3,000, while a new Cadillac could be valued at $50,000 or more.
It makes perfect sense to get a fully comprehensive plan for a new automobile. However, do you need full coverage for a used car only worth a few thousand? The issue is some people end up buying way too much coverage for their old cars and essentially throw away their money. When selecting an auto insurance plan, you need to weigh the value of the vehicle and replacing it with the cost of insuring it. It does not make sense to spend $2,000 a year on a costly auto insurance policy when the vehicle being insured is only worth $3,000 or $5,000.
Only Buy the Auto Insurance Coverage You Need
If you purchased your car new, you might have kept the same exact coverage year after year. The problem with that strategy is cars age fast and even more so when lots of miles are put on them. Each year, prior to your current policies expiration, you should check your coverage and decide if you want to eliminate anything. Cutting back could save you hundreds yearly, and you could use that money towards saving up for a new car. There are insurance options that might not be smart for an older car that has depreciated by 50% or more the first few years of ownership.
One thing that is costly in most plans that can be eliminated if you are insuring an older vehicle is collision insurance. Collision will payout for damage done to your car if you hit another vehicle or object while driving. For example, let’s say you backed into a light post at a grocery store and dented the side of your car. Collision would pay for these damages inflicted, even though technically, you were at fault. If your automobile is eight years or older, it might make more sense from a financial perspective, to save your money and cancel collision altogether. Then, if you have some minor “brush-ups” like a dent here and there, you can pay for those repair costs out of pocket. Remember, if you have collision ins, you will still need to pay for the deductible when you file a claim. This can range from $250 to over $1,000. Just eliminating collision ins can save you about $500 per year. Get all your auto insurance needs today at good to go insurance online.
Compare the Current Value of your Automobile with the Cost of Covering It
You need to get your car appraised first before you decide on the type of car insurance policy. Your insurer will use a standardized guideline to figure out how much they will pay for the make of your automobile and model. After you find out how much your car is worth, then look over your current coverage and decide if it makes sense financially to keep it. If the cost of insuring it for a year is more than the value of your vehicle, then you need to reduce the amount of coverage as much as possible and try to get a cheaper rate. Doing these two things can save you hundreds annually.
If your car is worth less than $4,000, it might be sense to get liability only and pocket the savings. If you get into a small wreck, you can fix the damage out of pocket, or just not fix it at all if it’s not damaged too much.
Set Your Deductibles Higher
Auto insurers make a lot of money by offering low deductibles but charging higher premiums. This is almost always not a good idea and costs you more in the long run, considering you are a good driver and rarely get into a wreck. Raise your deductible up to $1,000, and you can save over 10% on your policy. You just need to be diligent and set aside the deductible amount in the event you need to file a claim.
Get Lower Rates Online
Some of the best deals for auto insurance are almost always found online. The cost of selling policies directly on the web is so much cheaper than the old way of maintaining offices, hiring staff and expensive salespeople. You end up winning with cheaper rates from sites like goodtogoinsurance. You can also manage your policy online, including making payments and filing claims. With direct pricing, insuring older cars for less is not only cheaper but more convenient. Get a quote today and see the difference yourself.