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
Search All Blogs
Read More Blogs
Unwrapping the Wiener: A Deep Dive into the History and Lore of the Hot Dog
Beyond the bun: Discover the surprising history, varieties, and enduring appeal of America’s favorite tubular treat.
The Untapped Power of Collaboration: Why Asking for Help Fuels Business Success
Stop going it alone! Discover how leveraging the expertise of others can relieve pressure and drive your business forward.
Navigating the Grandparenting Journey: Understanding Today’s Families
Grandparenting today: Learn key shifts in family dynamics to build stronger connections with your children and grandchildren.
Mapping Our Paths: The Fascinating Reasons Behind Our Road Networks
The story behind the asphalt: Explore the geographical, historical, and planning influences that shaped our modern road systems.
Neighborly Navigations: Resolving Disputes in Non-HOA Communities
No HOA, no problem? Learn how to navigate neighborly disputes effectively in communities without formal management.
Vintage Years of Vision: Four Times Hollywood Hit Cinematic Gold
Like fine wines, certain years in film history stand out for their exceptional quality and the enduring impact of the movies they produced. This article explores four such landmark years, presented chronologically, that many cinephiles consider to be among the greatest in cinematic history.
Green Means Growth: How Environmental Responsibility Can Boost Your Business
It might seem like a secondary concern when facing immediate business challenges, but embracing environmentally friendly practices can actually be a powerful strategy for improving sales, attracting top talent, strengthening your brand, and even saving money. This article explores the tangible benefits of going green for your company’s bottom line and long-term success.
The Forgotten Beauty: Unearthing the Story of the Volkswagen Karmann Ghia
Beyond the iconic Beetle and the groovy Microbus, Volkswagen produced a surprisingly elegant and often overlooked sports car: the Karmann Ghia. This article explores the history, design, and enduring appeal of this “poor man’s sportscar” that has become a sought-after collectible.
Peace of Mind at Home: Building Your Essential Supply Stockpile
Recent global events have highlighted the importance of being prepared for the unexpected. This article outlines key non-perishable food items and essential household supplies that every homeowner should keep on hand to ensure comfort, security, and resilience during unforeseen circumstances.
Faded Glory: Remembering the Sports That Once Ruled Our World
Remember when these sports were huge? Take a trip down memory lane with harness racing, bowling, boxing, and poker, and explore their shift in popularity.