Why Are My Car Insurance Rates Climbing as My Car Gets Older?

Why Are My Car Insurance Rates Climbing as My Car Gets Older?

If you have had your car for several years, whether it is purchased new or used, you are likely aware it is not worth what it was when you originally purchased it. Some experts say that a new car can depreciated by 30, 40 or even 50% over the first five years. It may then occur to you that if your car is worth less money each year, why may your car insurance rates stay the same, or even increase? It is a fair question.

It can help to understand that car insurance rates are usually calculated separately into the costs of liability, comprehensive and collision coverages. When a company calculates rates, they are usually calculated over the anticipated life of the car. This can frequently mean that when a car is newer, the insured may have a slight advantage, and as the car ages, that advantage can shift to the insurance company.

As a car owner and auto insurance policy holder, what can you do? Well, as your car ages, you may want to consider whether carrying comprehensive and collision coverage is worth the additional premium. Some use what is referred to as the 10% rule. The rules says that if your premium for comprehensive and collision coverage exceeds 10% of the value of your car, it may not be worth keeping the coverage. For example, if the replacement value of a vehicle is $5,000 but it is costing $600 a year for the comprehensive and collision coverage, it may be time to consider dropping that coverage.

Another option you have is to begin comparing automobile insurance rates. Our independent insurance agents can make this process easier. With access to multiple insurance companies, we can do the shopping for you. We compare the rates and coverage of several companies, providing you options. You may be able to keep comprehensive and collision coverage with a more favorable rate. You may decide to just carry liability insurance to maximize your savings. The choice is yours.

How do you know if you are overpaying for your automobile insurance coverage unless you compare? Let our independent experts assist you. Contact us today for a no-obligation, no cost quote.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about our blog writer?

Read more about KayLynn's background.

Click Here

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

America’s Favorite Party Cities

Be Ready for a Good Time When You Roll Into These Towns

Your First Business Experience

What Was Your First Encounter with the Business World?

What Amount Would You Sue For?

What is The Value You Place on the Life of a Loved One?

Car-Focused Promotional Items You Don’t See Often Anymore

Car and Travel-Related Freebies Have Always Been Popular

Things Around Your Home Are Multiplying!

How Many Packets of Condiments Does a Home Need?

Spooky Places in America

Some Places Seem to Be Drenched in Darkness. Here are a Few.

The Importance of an Exit Strategy

How You Build Your Business Can Depend on How You Want to Leave It

When is the Best Time to Shop for Auto Insurance?

Is Thee a Time of Year or Season When You Are Likely to Find Better Prices on Car Insurance?

Things Around Your Home Are Disappearing!

Do You Still Use Wire Hangers or Bar Sap?

Sweet Facts About Candy

How Does Your Personal Favorite Stand Up Among the World’s?