As your car is aging but does not show signs of being an antique or classic automobile, it might be time to revisit your auto insurance policy.
Do avoid over insuring your car. As your car ages and loses its value, your auto insurance costs should decrease. You might consider reducing or eliminating high collision and/or comprehensive coverage for your vehicle.
So, what does collision insurance cover? Collision coverage pays to repair your own car following an accident, as the value of your car goes down, you do not need to keep the same auto insurance coverage as prior.
Comprehensive insurance pays for damage caused by factors other than accidents. The types of damage covered by comprehensive typically include fire, theft, vandalism, natural disasters and collisions with animals.
According to the public Insurance Information, if the vehicle is valued at $1,000 or less, the chances are good that collision and comprehensive coverage aren’t worth the cost.
However, you want to be informed how much it might cost to replace your car if necessary. As always, check with your insurance agent before reducing your auto insurance coverage, they will be happy to assist you.