Insuring a 10-Year-Old Car
I’m looking for ways to lower my insurance premium. My 2014 Dodge Journey is nearing 170,000 miles, and we’re currently paying around $1,500 a year for full coverage. 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 repairs, or would they just write off the car and reimburse me for its blue book value?
When insuring a 10-year-old car like your Dodge Journey, it’s common to reassess your coverage options, especially if the vehicle’s market value has decreased significantly. Typically, as cars age, many drivers consider transitioning from full coverage (which includes comprehensive and collision) to liability-only coverage, which could save you money on your premium. Here are some things to consider:
Value of the Car: Check your vehicle’s current market value (using resources like Kelley Blue Book or Edmunds). If the value is low, it might not make sense to keep full coverage, as the cost of premiums could exceed the potential payout after an accident.
Deductible Considerations: If you do choose to keep full coverage, consider adjusting your deductible to a higher amount. This could lower your premium but would mean out-of-pocket costs are higher in the event of a claim.
Insurance Company Policies: Different insurers have different policies regarding claims on older vehicles. Many will indeed total the car if repair costs exceed a certain percentage of its value, typically around 70%. In that case, you’d receive the blue book value, which may be less than the repair costs.
Local Laws and Options: Check with Hanover or your provider about specific policies they have regarding older cars. They can provide guidance on what coverage is necessary and what your options are for reducing your premium.
Discounts: Don’t forget to ask your insurer about potential discounts based on your driving record, bundling policies, or even low mileage if applicable.
Ultimately, it can be beneficial to get quotes from multiple insurers to see if you can find a better rate or coverage that fits your needs.