You’ve known and loved your car for a long time. But when it starts to show its age, you may find you’re spending more time in the repair shop than you once did, or finding new rattles and squeaks that weren’t there before. It’s at times like these that you might be asking, “Should I eliminate some of my insurance coverage?” Any car owner likes having fewer automotive expenses, but here are a few things you should consider:
Age and experience of the driver. If a teenager drives the car, more insurance makes sense.
Odometer reading. The amount of kilometres a vehicle has can also impact its value.
High-accident or theft areas. If you live in one of these areas, expect to pay more for insurance.
Overall value of car. If your car is actually a classic car rather than merely an aging car, you already know that you need more insurance, comprehensive and collision, to protect your investment.
What Is Collision Insurance, Anyway?When you have a collision policy, it covers damage to your car if you hit another car. Additionally, if you drive on a slippery surface and crunch your front bumper into a tree or building, your collision policy will cover repair costs.Basically, think of it as protecting yourself (or any driver behind the wheel) for any damages you (they) cause. However, collision insurance doesn’t cover injury to yourself or others. For that, think liability insurance.
Why Would a Collision Policy Benefit My Old Car?There are a couple of reasons you might want collision insurance even for an aging vehicle:
You bought an older car but are still on a financing plan that helps you with payments. In this case, you need collision and comprehensive insurance.
Your car is still worth more than $3,000. Find out by looking up the details on Kelley Blue Book. If your car hasn’t depreciated too much, collision insurance can still help you.