If you purchase or have owned an older car for a very long time, it is smart to check on whether you can reduce your auto insurance coverage. This may help you save a ton of money, especially if the current value of your car has declined. In fact, the value of the older car may be so low, that you are spending too much on insurance. The agents at UNO Auto Insurance are here to help you understand how to save on insurance payments if you have a low-value vehicle. Read on below, and contact our Phoenix, Arizona offices for quotes!
Changing the Type of Insurance You need
You may check Kelly Blue Book value for your car, and you may be shocked to find it is worth a mere $650. While you do need insurance to drive, you may not need a full coverage plan. The state of Arizona only wants to see you have proof of liability-only auto insurance. The state even has an option to show evidence of financial liability through purchasing a $40,000 Certificate of Deposit made out to the Arizona State Treasurer.
You may have been driving for a while with more coverage than you need! Liability only insurance usually pays out if you cause an accident and damage property or injure someone. Many drivers also have comprehensive collision coverage, which helps pay if someone else hits their car. This coverage adds more cost to your policy. However, if your car is only worth $650, is it worth paying a monthly premium to cover in case of damage?
You Can Also Adjust Deductibles and Coverage to Save
If you are concerned your car is still too valuable, and you want to keep a comprehensive collision policy, then there are other ways to save. You can seek to increase the deducible amount you will pay if you have an accident. You can also lower the coverage limits for physical damage or bodily injury, but use caution when doing so.
Older Cars are A Great Way to Save
If you are buying a car, you should check out an older or used model if you want to save on auto insurance. If you are a new driver, or buying a car for your teen, purchasing an older car can make sense. As people learn to drive, they will cause dents and damages. It may make sense to get a vehicle that will not lose a lot of value because of these accidents. In addition, your insurance payments will go down!
UNO Insurance agency can help you find out more about how to lower auto insurance rates for your older car and save in our Phoenix, AZ Offices. We welcome you to call us today!