If you own an older vehicle, you might be saving up for a new car, or maybe you simply like the dependability of your current vehicle. You might also be waiting until repair expenses add up to more than the price of a new car before getting rid of your old one.
Whatever the reason may be, owning an old car can be quite lucrative. However, until you trade your older vehicle in for a newer model, you shouldn’t be paying high insurance costs.
Collision coverage and comprehensive coverage are not required unless you’re leasing a car. Therefore, if you have full coverage car insurance, you may be spending too much money on a vehicle that will be retiring shortly anyway.
Continue reading to learn about how you could save money by dropping full coverage auto insurance on your old car.
Is It Worth Having Full Coverage Auto Insurance for an Old Car?
Full coverage auto insurance includes both comprehensive and collision coverage. If you drop full car insurance for your older vehicle, you could be saving money in the long run. This is because old cars, especially those over 10 years old, lose value due to depreciation.
If your vehicle is wrecked in an accident, you might find you save money by paying the repair costs out-of-pocket rather than paying expensive insurance rates year after year.
Additionally, if your full coverage policy comes with a high deductible, you’ll have to pay that before the policy kicks in to cover repairs, unless you’ve paid it down previously.
Is It Worth Having Comprehensive Insurance On an Old Car?
If you’re asking, Do I need comprehensive insurance on an old car? The answer is no. Unless you’re leasing a vehicle, you won’t be required to carry comprehensive coverage. If you have an old car, it’s likely not worth it to your finances either.
Comprehensive car insurance covers non-collision related incidents that result in damage to your vehicle, such as vandalism, theft, and storm damage.
While older cars are cheaper to insure, that doesn’t mean you should get comprehensive insurance on an old car. Comprehensive insurance is likely the last policy you’ll ever need to file a claim under, which is why dropping comprehensive makes sense if you drive an older vehicle. Not only does this save you money, but if your car is totaled by something such as a falling tree, you can use the money you didn’t spend on insurance payments to purchase a new one.
Is It Worth Having Collision Coverage on My Old Car?
Collision insurance helps cover damage that’s sustained to your vehicle when you’re involved in an accident in which you were at-fault. If you’re leasing your vehicle, you won’t be able to drop collision coverage until your car is completely paid off. However, if you own your vehicle, you can drop collision coverage whenever you like.
If your old vehicle has depreciated in value and you’re comfortable paying for extensive repairs, collision coverage may not be worth the extra monthly cost. Additionally, if you’re involved in an accident that leaves your old car totaled but you’re open to purchasing a new vehicle, you might want to drop collision coverage.
When Should You Invest in Collision & Comprehensive Coverage for an Old Car?
Your car may be old, but that doesn’t mean it’s not dependable. Here are some reasons why holding onto collision and/or comprehensive coverage may benefit you in the long run if you’re an old car owner.
- Your car has low mileage
- You car hasn’t depreciated greatly in value
- Your car has good resale value
- Your car’s engine is newer than the vehicle itself
- Your car has little to no rust
- You’re on a budget which doesn’t allow for the cost of monthly car payments
- Fixing your old car (if it’s totaled) would cost less than 50% of the car’s total value
If you need help insuring an old car, or finding the best policy for your driving habits and your vehicle, the representatives at Accurate Auto Insurance can help.
Contact Us for Cheap Insurance Quotes
Contact us at Accurate Auto Insurance if you’re searching for cheap insurance options for your older vehicle. We make finding Illinois vehicle auto insurance fast and simple.
Get an instant quote when you call (800) 999-1034 today!
