Insurance

My car is getting old…now what?

By July 29, 2009 May 7th, 2019 No Comments

oldcarFirst of all, be honest in your evaluation of your car.

Most of us love our cars, it’s an emotional thing.  Some of us even NAME them.  Mine is sadly simple, “Subie”.

However, as they become older, it is important to be realistic about their value.  With insurance, you’ll be looking at “ACV” (actual cash value) which means depreciation is considered and you might not get as much as you would like, if you have a claim.

That being said, note that the comprehensive and collision coverage on your car add signficant premium cost to the bottom line.  Should you still be paying for a coverage that may not be worth it?

If the car has a loan, you have no choice.  You must carry the physical damage coverages until that is satisfied.  Once it’s “yours”, it’s up to you.

Depending on the model, of course, values can start to really dip when you are at the 8-9 model years old point.  Consult with Kelley Blue Book or Nada to ballpark your vehicle value.   www.kbb.com and www.nada.com

Know your comfort level for being responsible to repair or replace that car yourself.  If you have a car worth $2,500 and you can swing it, it may be time to save the premium dollars and drop the coverages.  If you only have $48 in the bank, then maybe the coverage IS still worth having, providing the car is in decent shape bodywise.

Remember, if it has dents, rust or other issues, there may be deductions at the time of the claim. 

Look at your car with a critical eye and be honest with your estimation.  Talk with your agent and see how much is at stake in regard to the premium.  Then make a wise choice for ‘ol Bessie.