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Do Owners of Older Cars Need Comprehensive Insurance?

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Should I Carry Comprehensive Insurance on an Older Car in San Diego, CA

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Reevaluating your car insurance coverage as your car ages is a great way to make sure you’re only paying for what you need. You might have heard that insurance coverage for older cars is more expensive, but this isn’t always true. Insurance companies offer a wide range of policies and coverage limits that can help you determine if it’s time to drop your comprehensive policy. As they consider their options for car insurance, San Diego drivers should be aware of these factors that can help them decide if they need comprehensive coverage.

Take Any Loans into Consideration

Auto loan lenders typically require you to carry comprehensive coverage until you’ve paid off the loan. The amount of coverage you’re required to carry varies among lenders. This requirement simply protects the lender’s investment if you’re at fault in an accident, since the repairs will be covered. Removing comprehensive coverage before your car is paid off could result in serious penalties.

Inquire about Coverage for a Classic Car

If you have a classic car with a high value, you might want to delve more deeply into your insurance options. While most cars have coverage limits that are based on the vehicle’s age and mileage, you may be able to arrange for a policy that’s customized to fit your car’s value better. For instance, classic cars often have specialty parts and improvements that help them retain their value for longer. Comprehensive coverage in this case could be worth it if you have an accident driving to a car show or other special event.

Ask Yourself if You Can Afford a New Car Right Now

Comprehensive insurance covers repairs and other costs associated with an accident involving your car if you’re to blame for the accident. Although you’ll pay a higher premium compared to liability insurance, you may find it’s worth it if you can’t afford to just run out and buy a new car. If you have a good driving record, you may also find that comprehensive insurance isn’t that much more expensive compared to liability insurance alone. Adding uninsured motorist and rental car coverage can also help you make a challenging time easier.

Consider the Amount of the Deductible

Sometimes you can get lower rates on comprehensive coverage by adjusting the amount of your deductible. If you have an older car, you’re already saving on car payments. This might leave you with more funds available to cover a portion of any repairs. Higher-deductible plans can give you more flexibility regarding whether or not you choose to get comprehensive insurance.

Make Sure to Continue to Carry Liability Coverage

Driving without insurance leaves you vulnerable to major financial problems if you get into an accident. Most states also have laws that come with consequences such as expensive fines and the possibility of having your car impounded if you don’t have insurance. If you do decide to drop comprehensive insurance, work with your insurance company to ensure a seamless transition to a liability-only policy. Leaving no gaps in your coverage protects you from being hit with costly bills after an accident. 

If you need advice about which type of auto insurance coverage is right for you, reach out to the experienced professionals at Altra Insurance Services. Whether you need auto insurance, motorcycle insurance, or high-quality home insurance, you can trust us to provide reliable, affordable coverage. Give us a call today at (800) 719-9972 or request an online quote now.

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