Auto insurance rates on the rise for older vehicles

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shutterstock_60553933As per the recent survey done by the insurance industry, results have shown that the older vehicles are at a greater risk of theft when compared to the newer vehicles.  Auto insurance for older vehicles was generally cheaper but now the rates are actually on the rise when compared to new vehicles.  As per the new study it has been found that vehicles that are 20 years or older have been stolen and the cars that are over 14 – 20 years old have come in second.

All this while, you needed just the liability cover on older vehicles but now vehicle owners of the older cars will have to ensure that they can afford to replace another vehicle in case of a theft.

Given below are a few tips to save money on auto insurance and getting the coverage that you need.

  • If you feel that you cannot afford to increase the coverage with the present insurance company then it might be time to shop around for another insurance provider.  You could do a bit of online insurance shopping especially if you have not been served a ticket or a citation in the recent times then you could get a much better rate online.  You could get 5 real-time quotes from all the big insurance companies.  Use this facility to lock in the best rates that suit your needs.
  • If you are unsure about the insurance you wish to purchase then consider some of these facts.  In case your vehicle is stolen, will you be able to afford another one?  If the answer is ‘no’ then you must use the insurance calculator to see how much insurance is required on your car.  Most often motorists opt for the liability coverage if their vehicles are very old or worth less than $1,000 and the vehicles that are over 20 years old will fall into this category.  In case you wish to purchase more coverage then using the insurance calculator will give you the exact picture.
  • For most people higher insurance premiums on an older vehicle might seem ridiculous.  In such cases, it would be a good idea to set aside a certain sum each month in some high-yielding savings account.  This could come in handy in case of theft or if the vehicle is totalled in an accident.  This emergency fund could be utilized at the appropriate time.  This is a better option compared to paying higher premiums on old vehicles.