Auto Insurance And Older Vehicles

Many states require drivers to carry at least a minimal amount of automobile insurance. If you’re young and don’t make a lot of money, car insurance can get expensive — especially if you drive an old beat up car that’s only worth a couple hundred bucks. In this case, you’ll probably want to carry the least amount of insurance possible under the law.

First off, determine what your car is worth. The best way to do this is to use the Kelley Blue Book. They have a website that will allow you to enter all of your vehicle’s information such as the year, make, model, any special features and the shape that the car is in. All of these factors will determine what your car

Old Vehicle Insurance Auto

is worth. The categories for which Blue Book will determine your car’s value include trade-in value and also what you could ask if you were putting the car up for private sale. The private sale value is probably the best indicator of what your car’s insurance value would be.

So, if you’re driving an old car that is only worth $1,000, you probably won’t get it fixed if you’re in an accident and the damages total more than the car is worth. You also won’t fix the car if you have a $1,000 deductible

and the damages are$1,100. You would pay the $1,000 and the insurance company would only pay

$100. Collision and comprehensive coverage is generally the option that people with old cars skip because of these factors.

If you know what your car is worth, you’ll know how much insurance to buy, what size deductible you want, and how much repair is worth doing on the vehicle. Keep in mind, though, that the higher the deductible you carry on the car, the less expensive your monthly premium will be. Most people opt for a higher deductible to keep insurance costs down on older cars.

If you carry the minimal collision coverage because you have an old car and wouldn’t replace it in the case of an accident, that’s okay. Just make sure that you still cover yourself in case of damage or bodily injuries that you may cause in an accident. Even an old car can cause some serious damage to another person’s car, property, or body. In any of these cases, you’ll have to pay for that other person’s damages or injuries. This coverage is cheaper than other types of automobile coverage and is called bodily injury and property damage liability. Make sure that you have both.

You also need to make sure that you and your passengers are covered in case of an accident. Medical expenses can really add up and you don’t want to be on the hook for those costs. If you have health insurance, some of these costs may be covered. What won’t be covered is lost wages while you are in the hospital. In order to defray some of these other costs, you can add medical payments coverage, personal injury protection, and underinsured/uninsured motorist coverage. This last one is very important in case you have an accident with someone who doesn’t have any insurance at all, which is more common than you might think.

Click here for more information on this topic and a free Arizona Auto Insurance quote. See how we can improve your coverage and savings today!

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