Insurance for a 10-Year-Old Car
I’m looking to cut down on my insurance premium costs. My 2014 Dodge Journey is nearing 170,000 miles, and we currently have full coverage, which costs around $1,500 per year. Are there any general guidelines for insuring a vehicle of this age? If I were to get into an accident, will Hanover cover repairs, or would they just total the car and pay me its blue book value?
Insuring a 10 year old car
When it comes to insuring a 10-year-old car, there are a few factors to consider that can help you save on your premium. Here are some tips to think about:
Evaluate Coverage Needs: Since your Dodge Journey has high mileage and is getting older, you might want to consider whether full coverage is still necessary. Many people choose to drop collision and comprehensive coverage on older vehicles, especially if the cost of the premiums exceeds the vehicle’s value.
Research Actual Cash Value (ACV): Most insurers, including Hanover, typically base claims on the actual cash value of the car, which takes depreciation into account. If you’re involved in an accident and your vehicle is deemed a total loss, they will likely pay you the blue book value minus any deductibles.
Contact Your Insurer: It’s a good idea to reach out to Hanover directly to ask about your specific policy and options. They can provide clarity on what would happen in the event of an accident and whether repair costs are covered, depending on the severity of the damage.
Shop Around: Different insurance providers have varying rates and coverage options. It may be worthwhile to shop around and compare quotes to find a more affordable option.
Consider Discounts: Check if you’re eligible for any discounts (e.g., multi-policy discounts, safe driver discounts, or affiliation discounts) that could help lower your premium.
By weighing these factors, you can make a more informed decision about how to approach insuring your older vehicle. It might also be worth getting a few quotes based on different coverage options to see what works best for your financial situation.