Are auto insurance premiums higher for old cars? Cars are loved like pets..until it dies!
More than 40% of motorists say they plan to drive their vehicle “until it dies,” according to a survey of 4,000 consumers by AutoMD.com. Two-thirds of the respondents said they plan to surpass 150,000 miles on their vehicle, and about 60% said their vehicle already has been driven more than 100,000 miles. This is as per the report published in Forbes.
Would having older cars increase the auto insurance premium?
Car insurance premiums are based upon the statatical loss data that is gathered from the insurance companies every year. We have already discussed about car insurance rating in our earlier blog post and hence you can refer to our recent post on
Let us now discuss the different car insurance coverage to better understand any increase in the auto insurance premiums.
Car insurance has a number of coverage like Liability coverage, comprehensive coverage, collision coverage, uninsured driver and personal injury medical coverage. Normally the rates which vary based on the claims experience and by car type or model would be linked to the liability coverage and the comprehensive or collision coverage only.
If the safety features of the car that you have are not as per the Insurance highway safety requirements, you would as it is paying higher car insurance premiums on the liability and hence it would not matter what the age of your vehicle is since the make& model is playing a key role and not the year of manufacture.
Now, considering the comprehensive coverage and collision most insurance companies would not be offering you any of these coverage once the car is over 10-12 years. Also if you consider the cost of insurance on these coverage compared to what you would get back from the insurance company as replacement value in case of total loss after considering your deductible would be very less. In this scenario you are better off not going for , comprehensive car insurance coverage.
Keeping older cars, well maintained so that you do not have issues of claims and accidents due to any mechanical issues in the car, would be the only concern. This is on account of your driving record being linked with your car insurance. You might be a good driver, but do not want to be penalized on account of issues with your car. Thats all you need to take care off.
Yes, keep your car like your pet till it dies… without having to worry about the car insruance rates.
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Tagged with: Auto Insurance Premiums • Car Insurance Coverage • Car Insurance Premiums • Car Type • Cars Cars • Claims Experience • Collision Coverage • Comprehensive Car Insurance • Highway Safety • Insurance Companies • Insurance Company • Insurance Premium • Insurance Rating • Liability Coverage • Medical Coverage • Old Cars • Older Cars • Safety Features • Safety Requirements • Uninsured Driver
Filed under: Best car insurance rates
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