Vehicles are significant assets. However, it’s a common fact that they depreciate the longer you keep them. As vehicles start to accumulate mileage, there’s a chance that they break down. That’s why finding the right car insurance policy is important.
As you research auto insurance in McKinney, TX, assess your financial situation before deciding. There are several other variables to consider while purchasing auto insurance for an old or vintage vehicle. However, a solid car insurance policy for an older vehicle should include these types of coverage.
Liability coverage is one of the most important parts of your car insurance policy. You are covered if your vehicle damages someone else’s property in an accident. Generally, you are legally required to have liability coverage to operate your vehicle in most states. Liability insurance contains three types of limits. The first limit layer covers the medical treatment for any injured parties due to the accident. The second layer covers all of the injuries resulting from the accident. The third layer of coverage takes care of the repairs if your vehicle causes property damage. It’s best to have enough to cover all your assets. That way, you won’t be in jeopardy of losing anything if you are facing a lawsuit.
Comprehensive coverage protects your vehicle in unique ways. If your vehicle is damaged in a fire or inclement weather, you can rely on the coverage. Comprehensive coverage also protects you financially if your vehicle is vandalized or stolen. The age of your vehicle is significant because comprehensive coverage only covers the retail value of your vehicle. You also have to pay attention to your deductible, which is the amount you are responsible for paying before your insurance takes over the claim. If your premium greatly exceeds your maximum benefit, you don’t have a good policy.
Collision coverage takes care of the repairs if your vehicle makes an impact with another one. In some cases, collision coverage may not be ideal for an older vehicle. Remember the coverage will pay the retail value of your vehicle minus the deductible. The coverage limit goes down if you have an older model that has lost a lot of retail value. If you are financing your vehicle, your lender may require you to purchase collision coverage. If you own your vehicle, consider dropping the coverage if you pay higher premiums than 10% of the current retail value.
You can add extra coverage to your auto insurance in McKinney, TX. Towing coverage is an asset for an older vehicle, and this ensures that you will receive urgent service if your vehicle breaks down while you’re on the road. Consider adding rental car coverage as well. This coverage allows you to operate another vehicle until your vehicle is repaired.
As your vehicle starts to age, there are a lot of variables to consider regarding car insurance. Take your time and figure out which coverage options will protect your vehicle and benefit you financially. If you have any questions regarding your policy, our team of insurance experts at Pierce Insurance Group will assist you. Call us today to request a quote.