If you drive an older car, the chances are very good that you are paying more than you should be for your car insurance. Older cars have different values and costs than newer cars, which means they should be insured from a different perspective. It makes sense to carry full comprehensive coverage for a brand new car because the costs of replacing or repairing that car can be very high. With an older car, though, you have to measure the value of the car against the cost of paying for a high level of insurance.
Only Carry Coverage You Need
If you have owned your car for several years, you probably purchased your insurance based on the condition of the car when you first bought it. Cars age very quickly, especially if they are used regularly. Think about the coverage you have and then compare it with coverage that you would really use. You can probably reduce the amount of coverage that you are carrying by getting rid of some of the more expensive parts of your policy that do not really apply to an older car. One of the most expensive coverage options in most car insurance policies is the collision coverage. Collision insurance will pay you for damages that your car does to any other vehicle or object. If you accidentally back into a neighbor’s fence, for example, your collision coverage will pay for it. When you have a car that is 10 years old or older, however, the cost of replacing that fence may be less than the cost of carrying collision insurance. Many people who drive older cars can save quite a bit of money by getting rid of collision insurance from their auto policies.
Compare the Car’s Value with the Cost of Coverage
When you are considering how much you should pay for insurance for your older car, it is important to find out how much your car is really worth. Your insurance company will use a standard guideline to determine how much they will pay for a car that is the age and model of yours. Find out what that value is, and then compare it with the type of insurance coverage that you are paying for. If the amount of money that you pay annually for insurance is significantly higher than the amount of money that you would receive if anything happened to your car, you should look into reducing your coverage to reflect the real value of your vehicle. Do some research into the costs of repairing a car that is similar to yours, as well. You may find that the repair work would be much less expensive today than it was a few years ago. It is possible to cut hundreds of dollars from a car insurance policy when you remove unnecessary coverage that does not really apply to your situation any longer.
How Important Is Your Car?
Many people keep older cars as their second or third vehicle and purchase newer cars for their every day driving needs. Think about what you would do if your older car were damaged so that it could not be driven any longer. If an extra car that is not driven very often, you may actually decide not to replace it at all. There is no reason to continue paying high insurance rates for a car that you would probably not choose to replace if it became extensively damaged. Cut your insurance coverage down to the bare minimum for any car that is not considered vital to your household.
Adjust Deductibles Properly
Car insurance companies collect a great deal of their money through convincing customers to carry low deductibles. You can save money by increasing the deductibles even a small amount on your older cars. If the car’s value is not very high, there is a good chance that it will be considered a total loss by the insurance company if it is involved in an accident. The deductible will not matter for you if that is the case. Pay lower premiums and increase your deductibles on any cars that are more than 10 years old.
Research Your Duplicate Coverage Features
Comprehensive auto insurance policies usually include rental car options that will pay for a rental car when your car is in the shop. If you carry this type of insurance, you should look at the other memberships and credit cards that you own as well. Many of them offer the same type of rental car coverage that you are paying for as part of your auto insurance. You can remove the rental car coverage without any risks and pay less every year. There may be other elements of your auto insurance that are covered through other methods as well.
Pay Less if You Drive Less
If your older car is a classic that you only pull out of the garage on summer weekends, you will probably qualify for a low mileage insurance policy. Many insurance companies offer rates that depend directly on how much the car is actually driven. You can sign up for a policy that will only allow you to drive a certain amount of miles in a year, or you can find one that will only charge you for the miles that you actually travel. Either way, if you leave your car parked more often than you take it out on the road, you can save some money on your car insurance.
Take Advantage of Specific Discounts
There are many specific types of discounts available to people who own older cars. If you happen to be 65 or older, you may qualify for a senior discount. You can also receive discounts for keeping a detailed maintenance record that proves how well you have kept your older car. Defensive driving courses are another way to receive discounts on your older car insurance. Look through your insurance policy carefully to see what you qualify for before you renew your coverage for the next year.