Auto Insurance Tips For Older Vehicles
If you have an older vehicle, you still need to carry auto insurance on the car to meet state requirements. However, you should know a few tricks about getting the best rates and coverage when you are driving an older vehicle.
Always Carry the Minimum
First, you need to make sure you always carry the minimum required insurance in your state. In most states, the minimum insurance requirements provide you with liability coverage, so you can pay if you are responsible for damaging someone's car and causing damage to the occupants.
Increase the Liability Coverage Above the State Minimum
It is often a good idea to increase the liability limits above the state minimum to protect your assets, as they can be pursued if you get into an accident with someone and their damages exceed the state's limits. It shouldn't cost you very much to increase the liability coverage about the state minimum.
Get Medical Payment Coverage
Next, you are going to want to add medical payment coverage to your insurance coverage. With medical payment coverage, no matter if you are at fault or the other driver is at fault, your medical needs will be fully covered.
Even if you have health insurance, it is a good idea to get medical payment coverage. You don't have to pay a deductible, and your medical payment coverage will kick in before your traditional healthcare insurance, which can be a real cost saver.
Comprehensive and Collision Coverage
With an older car, you may not want to carry comprehensive and collision coverage. Comprehensive coverage covers damage to your vehicle outside of an accident, and collision coverage is for damage that happens during an accident. Both types of coverage require a deductible and can add greatly to your insurance costs.
With an older vehicle, depending on the cost of comprehensive and collision coverage, it may be more affordable to drop the coverage if your car's value is lower. You may better serve yourself by putting the money you would spend each month for comprehensive and collision coverage into a savings account so you can afford to pay to replace your car if it is damaged in an accident.
Keep Roadside Assistance
It is a good idea to keep roadside assistance, especially with an older vehicle. An older vehicle is more likely to experience mechanical issues that may require a tow truck, and the cost is low to carry this coverage.
Get Rid of Unnecessary Extras
Finally, you will want to get rid of any extras that you don't need anymore. For example, if you are not carrying a loan anymore, you will want to drop gap coverage.
You should carry above the state-required liability coverage, medical payment coverage, and roadside assistance with an older car. You don't necessarily need to carry comprehensive or collision coverage, and you don't need unnecessary extras like gap coverage. Making these changes can make your insurance more affordable.
