You have a vehicle that’s well-loved. You rely on the car (or perhaps do not use it often), but you know you need to have auto insurance for it. Still, you just do not want to spend a lot of money on an older or used car. There are a few options for reducing your coverage costs. Here’s what to think about before buying a policy.
Is the Vehicle Under a Loan?
A good place to start is whether you are buying the car or you outright own it. If you are obtaining a loan for the car, the lender may require full coverage on the car. This usually includes collision insurance, liability insurance, comprehensive coverage and uninsured motorist coverage. The same applies to leasing vehicles (though it is not common to lease older cars).
If you do not have a loan, that means there is more room to be flexible with your coverage. Always purchase enough insurance to protect yourself. If you would suffer financially from the loss of a vehicle, make sure you have ample coverage.
Tips for Saving Money on Older, Used Vehicle Insurance
Insurance costs for older cars may be lower, but only if the value of the car is lower or if you choose a reduced level of coverage. Here are a few considerations.
- The vehicle does not have much worth, and you could easily replace it. In this situation, buying just liability insurance may be an option for you.
- The vehicle is valuable to you, but not highly valued on the market. Here, you may be able to choose a lower value of full coverage to save money.
- You have the car as a backup and do not drive it often. You may be able to secure a low mileage discount for your vehicle.
- The car is very old and considered a classic. In this case, you may wish to consider classic car insurance. Antique vehicle coverage may also be available to you.
The goal is always to buy coverage the represents your risks. You do not want to go without liability insurance if your car is on the roads. However, your auto insurance agent may offer tips for saving money on other forms of coverage. Meet with your car insurance agent. Discuss your goal of lowering your costs. Many times, they can offer outstanding savings options.
Also Read: 5 Auto Insurance Blunders to Avoid