Insurance for a 10-Year-Old Car
I’m looking for ways to reduce my insurance premium. My 2014 Dodge Journey is nearing 170,000 miles, and we currently have full coverage, which costs around $1,500 per year. Is there a general guideline for insuring a car that’s a decade old? If I were to get into an accident, will Hanover cover the repairs, or would they just declare the car a total loss and reimburse me based on its blue book value?
When it comes to insuring a 10-year-old car like your 2014 Dodge Journey, it’s definitely worth considering whether full coverage is still necessary. Here are a few points to help you decide:
Value of the Car: Research the current market value of your car using resources like Kelley Blue Book or Edmunds. If the value is significantly lower than your insurance premiums, it might make sense to switch to liability coverage only.
Repairs vs. Total Loss: With a vehicle of this age and mileage, insurance companies often consider a car a total loss if repair costs exceed a certain percentage of its value (generally around 70-75%). If you’re in an accident, they might pay out the current market value rather than covering repairs, especially if they’re more expensive than the blue book value.
Cost-Benefit Analysis: Calculate how much you’ve paid in premiums over the past couple of years, and compare it to the potential payout if the car were declared a total loss. This can help you weigh the risk versus the cost.
Deductibles: Consider raising your deductible to lower your premium. Just make sure you can afford the out-of-pocket expenses if you do need to file a claim.
Discounts and Policies: Check with Hanover or your provider for any available discounts, or even consider switching to a different provider that may offer a better rate for older vehicles.
Ultimately, the decision should hinge on your financial situation and comfort level with risk. If you’re leaning towards lowering your coverage or switching insurers, it’s wise to speak directly with your insurance agent about what’s best for your specific situation and to clarify their policies on repairs and total loss for your car.