The-Agent-Old-AutosMost people think that the older their car is, the cheaper it should be to insure. That’s not always true.

It’s true if you total an old vehicle, you will get less money than you would for a new one, but if you damage an old vehicle, it costs just as much to repair it as it would a new one. More often than not, vehicles are not totaled in an accident. The insurance company pays to repair the vehicle and possibly for a rental car.

Does insuring a newer, safer vehicle cost less than insuring old cars that lack extensive safety features?
Often, the medical payments are more than the car repair bills. Newer vehicles have many safety features that help to prevent injuries. I have had clients replace an older vehicle with a newer one and their rates went down.

What are some things drivers can do to keep their rates lower?
Drive safely and don’t speed. Speeding tickets impact your premium because people who speed are more likely to be involved in an accident and high speed accidents cause more damage and injuries than low speed accidents.

When you have damage, decide if it is worth turning in a claim. If your car has been scratched and it will cost $100 to repair, it might be better to pay for it yourself. Having 5 or 6 small claims will increase your premium.

Choose higher deductibles. If the insurance company doesn’t have to pay small dollar losses, it can offer lower premiums.

No one wants to pay a lot of money for insurance, but if you choose the cheapest coverage, it could end up costing you a lot more if you are involved in an accident. It is more important to make sure you have coverage that will protect you than it is to save a few dollars in premium.

Having your auto insured with the same company that insures your home can save you money on both policies. Add a life insurance policy to get even bigger savings.

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