Why don't insurance premiums drop as a vehicle gets older?
| by Gary Brown | May 15, 2007
Visit my site for a competitive Auto Insurance Quote Arizona Auto Insurance
Often the premiums do drop as a vehicle ages, but not as quickly as some consumers would want.
What makes the biggest premium difference is when you decide to drop collision and comprehensive. This removes "full coverage" from the vehicle but you likely will see a decent drop in insurance premiums too.
I get the question from time to time. "How come my insurance premiums do not drop each year when my vehicle is another year older?".
If you look at your insurance policy, most of the items on it have nothing to do with fixing or replacing your vehicle in a claim. Collision covers you in case the vehicle is damaged while moving. Comprehensive covers you in case of vehicle theft, vandalism, or a tree falls on it.
What about other coverage on your policy, such as bodily Injury, property damage, uninsured & underinsured motorist, glass, road service, car rental, or medical coverage?
Those items have nothing to do with the age of your vehicle.
But ok, so your vehicle is another year older. Does that mean automotive parts are dropping in price? Does that mean labor costs to fix your vehicle is going down? The answer is obviously no to both questions.
What many consumers are referring to is a Total Loss, in the event their vehicle is damaged in a claim beyond repair or is stolen and never recovered. Sure, you likely will get less from the insurance company as your vehicle ages but you have to understand the complete picture.
An auto policy covers you if YOU hit someone else. It can cover injuries in YOUR vehicle (medical coverage) and pays to provide YOU a rental car or road service, replaces the windshield or gives YOU uninsured/underinsured benefits. It pays to fix your vehicle as well.
But yes, if your vehicle was in a total loss, you may get less back from the insurance company in the event of a total loss. However, take a look at your declarations page the next time one comes in the mail. You will notice a whole lot of items that have nothing to do with a total loss.
Visit here for a competitive Arizona Auto Insurance Quote: Arizona Auto Insurance
Want a competitive HOME insurance quote? Arizona Home Owner Insurance
Often the premiums do drop as a vehicle ages, but not as quickly as some consumers would want.
What makes the biggest premium difference is when you decide to drop collision and comprehensive. This removes "full coverage" from the vehicle but you likely will see a decent drop in insurance premiums too.
I get the question from time to time. "How come my insurance premiums do not drop each year when my vehicle is another year older?".
If you look at your insurance policy, most of the items on it have nothing to do with fixing or replacing your vehicle in a claim. Collision covers you in case the vehicle is damaged while moving. Comprehensive covers you in case of vehicle theft, vandalism, or a tree falls on it.
What about other coverage on your policy, such as bodily Injury, property damage, uninsured & underinsured motorist, glass, road service, car rental, or medical coverage?
Those items have nothing to do with the age of your vehicle.
But ok, so your vehicle is another year older. Does that mean automotive parts are dropping in price? Does that mean labor costs to fix your vehicle is going down? The answer is obviously no to both questions.
What many consumers are referring to is a Total Loss, in the event their vehicle is damaged in a claim beyond repair or is stolen and never recovered. Sure, you likely will get less from the insurance company as your vehicle ages but you have to understand the complete picture.
An auto policy covers you if YOU hit someone else. It can cover injuries in YOUR vehicle (medical coverage) and pays to provide YOU a rental car or road service, replaces the windshield or gives YOU uninsured/underinsured benefits. It pays to fix your vehicle as well.
But yes, if your vehicle was in a total loss, you may get less back from the insurance company in the event of a total loss. However, take a look at your declarations page the next time one comes in the mail. You will notice a whole lot of items that have nothing to do with a total loss.
Visit here for a competitive Arizona Auto Insurance Quote: Arizona Auto Insurance
Want a competitive HOME insurance quote? Arizona Home Owner Insurance
Article Source: http://www.articleset.com
You are welcome to publish or reprint this article free of charge, provided:
- you include the entire article, unchanged, including the "About The Author" box
- all hyperlinks remain active, including the bottom ArticleSet.com link (does not apply to print publications)
- you agree not to hold the authors nor ArticleSet.com liable for any loss profits, expenses, or any other damages resulting from the use or misuse of articles published on this website
Menu
Home Top ArticlesTop AuthorsSubmit ArticleArticleSet BlogLink To UsArticle FeedsTermsContactFeatured
Language
