Cheap Car Insurance. For An Old Car?

Cheap Car Insurance. For An Old Car?

Do I even need cheap car insurance for an old car?

Your car’s age and it’s trade in value make a difference when searching for cheap car insurance. And it’s possible you don’t need car insurance at all.

If you are not driving the car and do not plan to simply go to the courthouse and tell them you do not want to license the car. Just make sure you don’t forget and then drive it! But if it’s in your garage awaiting some tender loving care there is no need to pay the cost of the license and certainly you don’t need cheap car insurance on it.

Once that old clunker is restored or road ready then you of course must license it.  At that point you also need at least liability insurance on it.

Just consider the actual value of the vehicle. Are the premiums for comprehensive coverage even worth it? Are the annual car insurance premiums more than the car is worth? It all comes down to dollars and cents.

If you have an old car worth only $1200 and your full coverage insurance payments are $2400 it makes little monetary sense to maintain that type of car insurance coverage.

The price you pay for your physical damage coverage goes down along with the value of your car.

If you own a twenty year old car and still have ten years worth of payments due to the bank you’ll need full coverage.

One rule of thumb is to consider the car’s remaining useful life. Multiply the number of years by the annual premium. Compare that to how much you will receive for a total loss. How good a deal do you think it would be to keep paying that part of the premium?

This is totally subjective. Consider your peace of mind. Even a car that some consider worthless is worth insuring if the loss would cause you to lose your sole method of transportation.

Even if your insurance didn’t pay much, if it is enough to get you into another car that meets your needs, then that is a price that may be worth paying.

How do you know how much you will get for a total loss? Generally insurance companies will look at common references for valuing vehicles, such as the “blue book” or average price a similar vehicle is selling for in your area.

Physical damage to your old car is the one place in your personal auto insurance it may actually make sense to minimize or eliminate coverage.

You not only face getting less money from a settlement, but if you are like many, a scratched fender may not seem nearly as important to fix when the rest of the car is being held together with duct tape.


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