One of the long-term after effects of the Great Recession four years ago is that fewer people can afford to buy new, big-ticket items to replace older products, including their cars. As a result, many drivers are making do with their older vehicles over longer periods of time rather than invest in a newer, more expensive car. I’ve had my current van for years. It’s paid off and has nearly 100,000 miles on it. It still runs great and I love the fact I don’t have a monthly payment.
According to market research, over 240 million vehicles are on US roads every year, but the average age of cars as of 2013 is over 11 years old. Older vehicles typically depreciate in value to the point where paying insurance on the cars costs more than the vehicles are worth. Most insurance experts suggest that if a vehicle is worth less than $1,000, comprehensive insurance premiums aren’t worth the cost.
Depending on the age and subsequent value of your vehicle, reviewing your car insurance policy could be in your best interests. As the value of a car declines, the premiums for insurance coverage become more expensive and less worthwhile for you as a driver. While liability premiums are mandatory to legally drive on the road, other forms of coverage such as fire, theft, or comprehensive are optional which could be worth more or less to you as a driver depending on the age of your car.
One way to find out if you are paying the right amount for insurance is to compare the leading car insurance rates online. Car insurance comparison sites help drivers find the best advertised car insurance rates, terms, and policies from the leading companies across the US all within minutes. This one-stop shop comparison helps you easily identify if you are paying more for insurance than you should, or if there is a way to add more options to your coverage without breaking the bank.
As you age in life, it’s common to take time for reflection to ensure you are making the right decisions. The same philosophy applies to aging cars, and drivers should take the time to determine if their insurance rates are worth straining the budget.