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buying Best insurance coverage for your car's age

00:49  02 november  2016
00:49  02 november  2016 Source:   carinsurance.com

9 Ways to Drive Down Your Auto Insurance Rates

  9 Ways to Drive Down Your Auto Insurance Rates Don't put your head in the sand about auto insurance. There are things you can do that add up to big savings on your policy.If you’re going to drive a car, you need insurance. There’s really no way around that. But you have more control over your auto insurance rates than you likely think. And that can translate into big savings.

A vandalized car is bad enough, but without the proper car insurance , it can turn into a very The good news: In most cases, a claim made against your comprehensive coverage will not raise your However, there is the possibility that your car insurance rates could be raised due to the number of

Recommended car insurance coverage . Filing an accident claim means you are likely to pay more for your car insurance coverage . Average car insurance rates by age data shows that drivers typically pay higher rates until age 26, when rates begin to drop as drivers gain more experience on

Grampa and grandson with Mustang© Provided by CarInsurance.com Grampa and grandson with Mustang

Why buy a new car when you can fix the old one and -- here's an added bonus -- pay less for insurance, too?

This is just what drivers did post-recession. While sales of new cars have been picking up, the average age of passenger cars and light trucks rattling around on American roads is at a record high of 11.5 years, according to consultant IHS Automotive. In 2006, the average passenger vehicle was 10 years old.

Even new-car buyers are holding on longer, waiting 6.5 years before trading in as opposed to four, the average in 2006. Used-car buyers are waiting five years instead of two.

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Compare cheap car insurance prices from the best insurance companies in your area. In this day and age , we are all trying to save on the products we buy. This includes your insurance . If you have a loan out on your car , or lease a car , or perhaps you just like being extra careful, full coverage is a

"As long as we have tracked average age, it has gradually risen over time due to the increasing quality of automobiles," Mark Seng, global aftermarket practice leader at IHS Automotive, said in a company statement. "For the five to six years following the recession, however, average age increased about five times its traditional rate."

Certainly cars are more durable. But they're still susceptible to that road menace known as other drivers, not to mention thieves, tree branches, hail storms and your own really bad parking job.

So what to do about insurance as the car depreciates? It's tempting to drop coverage -- and lower your bill -- but how much risk do you want to take? It's an individual choice, full of variables. But here's a guideline, tackled by the age of the car.

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Many car owners avoid buying full coverage policies because they think they are too expensive. If you are looking for cheap full coverage car insurance near you, you’ll be happy to hear our QuoteScout™ search engine is specifically designed to track down the best deals in your area.

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  Best insurance coverage for your car's age © Monty Rakusen/Getty Images

If you're enjoying new-car smell, you should be paying for full coverage. This means that in addition to liability car insurance, which covers harm to others and is required by law (except in New Hampshire), you'll have collision and comprehensive insurance, too. These cover your car.

Comprehensive insurance reimburses you up to the value of your car, minus the deductible, if something happens to it: hail, rocks, animals, thieves, vandals. Collision provides the same coverage if the car hits something: another car, a pothole, a berm after sliding on ice.

First, the bank most likely owns some of that car and will require that you buy full coverage to protect its asset. Only 15 percent of new-car buyers pay cash. The rest finance. The bank can even buy coverage for you and charge you a hefty amount for something called forced-place insurance. It can even require you to pay extra in order to maintain a low deductible.

3 Things That Can Get You Dropped From Car Insurance

  3 Things That Can Get You Dropped From Car Insurance 3 Things That Can Get You Dropped From Car InsuranceWe've explored some of the most common reasons car insurance policies are canceled: things like failing to pay the premium, fraud, making unapproved modifications that change the value and functionality of your car, having your license suspended or revoked, and major moving violations (especially DUIs or DWIs). But here we'll explore some of the ways drivers end up getting dropped from their insurance policies that have nothing to do with their driving records — or anything they've done.

Insurance companies have different programs for different customers. Adults with good driving In addition to your age , gender and driving experience, information about the vehicle you drive, and how you In these cases, your insurer will usually just “total” the car and give you a check for the car ’ s

Liability car insurance provides coverage for at-fault accidents. Car insurance companies relate age to maturity and experience. An experienced driver with a good driving record or history demonstrates responsibility and stability, and thus deserves cheap premiums.

Second, full coverage makes financial sense for you. If a tree falls and totals your car, you'll not only hear it, you'll feel it: the average price of a new car today is $33,560, auto researcher Kelley Blue Book reports.

Gap insurance may also be something to consider at this time, especially if you made a small down payment. A new car loses 11 percent of its value when you drive it off the lot, and 15 to 25 percent each year, according to auto researcher Edmunds.

That means the car you bought for $30,000 may have a market value a year later of just $24,000, which is how much the insurance will pay if it's deemed a total loss after an accident or theft. But given the extra you paid in fees and taxes at the dealer, you still owe $29,000 on your loan. And you had to pay a $500 deductible. Gap insurance will pay that $5,500 loss for you.

Shop around; you should be able to find a policy that costs about 5 percent of your combined comprehensive and collision premium.

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  Best insurance coverage for your car's age © monkeybusinessimages/Getty Images

Yes, your car has depreciated. But let's say it's still worth $10,000 to $20,000. Are you willing to eat that much in the event it's declared a loss?

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If you dream to own a car , you'd have to get your motor insurance sorted, whether it' s third party only or comprehensive protection. You like to drive fast, but what happens when you lose control and crash?

Did you know “full coverage " car insurance doesn't actually exist? It' s a term often used to refer to the combination of collision and comprehensive. The best protection is frequently the most insurance you can afford to carry. Remember that what one person considers “full coverage " may not be the

At this point, consider instead selecting a higher deductible on these, which will lower your bill. You'll want to pay for small incidents out of pocket anyway, says Penny Gusner, a consumer analyst for Insure.com. Filing an at-fault claim could jack up your rates for three to six years, depending on the law in your state.

"Let's say you're five years in and you've paid off the car. The smart decision is to keep collision and comprehensive because you want your car protected and your car is still worth a fair amount," she says.

"If you back into your mailbox and your damage is $1,100, you don't really want to file a claim," she says. "You can get your rates bumped up just because of that. Save your insurance for the major incidents."

You can, however, likely scrap the gap coverage at this point.

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  Best insurance coverage for your car's age © Meridian Studios/Getty Images

The average length of a new-car loan is now 67 months, says information-services company Experian. For many owners, then, this is their first opportunity to drop full coverage.

Now's the time to start paying close attention to your car's worth. Sites like Edmunds or Kelley Blue Book can roughly assess its value. Let's say it's $9,000. Now subtract your deductible, say $1,000. That $8,000 is what your insurance will pay if the car is declared a total loss.

6 Car Insurance Discounts You Should Ask About

  6 Car Insurance Discounts You Should Ask About 6 Car Insurance Discounts You Should Ask AboutInsurance is the costliest car-related expense for drivers after the vehicle itself (recently surpassing gas), so it's no surprise that consumers seek discounts to reduce their car insurance rates. Car insurance companies spend exorbitant amounts of money each year on advertising, and they're certainly not shy about promoting discounts that supposedly make them more affordable than their competitors.

The auto and car insurance quotes here are the best the industry has to offer. In addition to larger companies, we also offer other carriers that have discounts and offers that are virtually unheard of in some of the This coverage will not pay for your medical expenses or damages to your vehicle.

Car Insurance : Optional Coverage vs. Required Coverage . It’ s never a good idea to carry more car insurance than you truly need, said Carole Walker, executive director of the Rocky Most cars lose value as they age , but in some cases older cars attain a greater value by achieving classic car status.

Are you willing, and able, to lose that much at once? No, probably not. Even if you factor in the what you're paying for the insurance, it may beat the prospect of being without a large sum of cash when you need to buy a replacement car.

But let's say the car's a little older, or your insurance premium is high. Now you'd get $5,000 from insurance yet you're paying $800 extra per year. Would you rather sock that $800 into an account for a new car?

"The rule of thumb in personal finance is you should drop collision and comprehensive when the premium for those two reaches 10 percent or more of your potential pay off," says Gusner. The $800 premium above is 16 percent of the pay-off.

A survey by Insurance.com found that of the drivers with 8-year-old cars, only 40 were still buying full coverage.

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  Best insurance coverage for your car's age © Tim Makins/Getty Images

"When the vehicle's 10 years old, that's when I have the conversation," says Ryan Scruggs, a Farmers Insurance agent in Phoenix.

Take a 2000 Chevy worth $1,800, with a $1,000 insurance deductible, he says. "If you want it fixed, you pay $1,000 to get a check for $800 for an $1,800 car. Is the vehicle worth enough to justify the deductible?"

Collision insurance costs more than comprehensive, he says, so consider keeping comprehensive only to protect against things like storms and theft.

Whatever you decide, keep in mind that liability coverage is separate and helps protect all your assets should you be found at fault. Uninsured and underinsured motorist is likewise critical to cover your medical costs if struck by a driver without adequate insurance.

"I would never, ever, ever recommend to anyone with any vehicle, regardless of how old it is, to lower their liability in any way," Scrug

gs says.

7 Good Reasons to Shop for Car Insurance in 2017 .
Car insurance is meant to provide protection from a large financial burden in the event of a crash, but how do you avoid paying too much for coverage? "Shop around for car insurance" may be an insurance cliché, but it's still the best advice on how to save money on your policy. Car insurance is meant to provide protection from a large financial burden in the event of a crash, but how do you avoid paying too much for coverage? "Shop around for car insurance" may be an insurance cliché, but it's still the best advice on how to save money on your policy. It literally costs nothing to shop and can often result in hundreds of dollars in annual savings.

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