Should I Buy Comprehensive Insurance for My Old Car?

March 27, 2014

An old car parked on the streetComprehensive insurance can be expensive. It’s necessary to understand the factors when deciding whether or not such coverage is right for your older car.

Even though the sentimental value of your car is high, the real world value is not. Which is why it’s important to be aware of the function of comprehensive coverage and whether or not it really is a good investment for you.

What is comprehensive insurance?

Comprehensive insurance is basically just that — coverage for a variety of situations that could cause damage to your car, except an actual collision. This can include many different factors like:

  • Natural disasters
  • Theft
  • Fire
  • Vandalism
  • And other “Acts of God”

Each comprehensive coverage plan is different and it is important to know what is included in each.

How can I tell if my older car needs it?

The best rule of thumb when it comes to comprehensive insurance is to first know how much your car is worth. If you car is valued less than the price of your annual policy rate with comprehensive insurance included, more often than not it does not need to be included. This generally dictates that the car is beyond a true point of reclaiming and retaining further value.

It is also wise to note the area where you live. Some areas are more prone to natural disasters, like hurricanes and tornadoes.

You should also consider the role your older car plays in your work life. Let’s say you own an older truck for work on a construction site. You rely on that truck everyday for commuting. Plus, it acts as a mobile office. It’s a critical part of your livelihood. In this case, you may want to consider comprehensive coverage.

Above all, your financial situation is the most important factor to consider when purchasing auto insurance. After research, if it makes financial sense to add comprehensive insurance to your auto coverage, it is probably best to do so.

For more information, or if you have questions about purchasing insurance for your car, contact Burkhart Insurance Agency.

Photo Credit: CC Image Courtesy of Bogdan Suditu

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