Adjusting Your Car Insurance as Your Vehicle Ages

Deciding when to adjust your car insurance coverage is a smart financial move as your vehicle ages. Here’s a guide to help you determine when it might be appropriate to reduce your coverage:

New Car (Fresh off the lot):

  • Coverage Required: Collision and comprehensive coverage (often mandatory if financing).
  • Reasoning: Protects against damage and theft.
  • Consider Gap Insurance: Covers the difference between the car’s value and your loan balance if it’s totaled.

Close to Paying Off (2-5 years old):

  • Consider Dropping Gap Insurance: The car’s value likely exceeds what you owe.
  • Maintain Comprehensive and Collision: Offers protection against significant financial loss if the car is totaled or stolen.

6 to 11 Years Old:

  • Evaluate Car’s Value: Use resources like Kelley Blue Book or
  • Consider Dropping Comprehensive: Compare potential savings with the car’s value if it’s totaled.

12 Years and Older:

  • Consider Dropping Collision: It’s often more costly than comprehensive.
  • Retain Comprehensive: Provides coverage for non-collision incidents.

Uncertain? Consult Your Insurance Provider:

  • Discuss Options: Your insurer can help you determine the best coverage for your situation.

Always assess your needs and your vehicle’s value before making changes to your coverage.

Get a free Auto quote online today!

Are you looking for Auto insurance in Santa Ana, California? We are a top-rated local insurance independent agency protecting all aspects of your life, from your business to your autos and home, we have you covered! The benefit of choosing an independent agent like us means options. We have relationships with many top-rated carriers to give you the best Auto insurance coverage you need that fits your budget. Don’t wait, call us today at (714) 285-9990 or visit our Quotes Online and start saving money.

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Are you ready to save time, aggravation, and money? The team at Neighborhood Insurance is here and ready to make the process as painless as possible. We look forward to meeting you!

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