The potential losses you may face with a high-mileage car are a bit different from those you would face with a relatively new car. That is why the auto insurance coverage for the high-mileage car should also be different from that of a low-mileage car. Here are some tips to use when buying coverage for a high-mileage car:
Buy Rental Car Coverage
Most insurance companies will give you rental car coverage at a reasonable rate, and you should strongly consider it if your car is old and rickety. This is because there is a high risk that your car will be spending some time in the mechanic shop in the near future. Having a rental car coverage ensures that you aren't without wheels even if your car takes a long time to fix.
Buy Towing Coverage
In addition to rental car coverage, you should also consider having towing coverage if your car is old. This advice is particularly relevant if you have had to tow your car more than once in the recent past or if your car has broken down in unexpected places. You might be unlucky to have the car break down on you in the middle of nowhere next time; towing coverage will ensure you get help if that ever happens.
Reduce the Deductible
It has already been established that an old car is more likely to break down on you than a new car. Not only that, but an old car is also likely to experience extensive damages in case of a crash. This is because most of its parts have experienced severe wear and tear over the years. Therefore, it's likely that you will be paying that deductible more than once in the near future and that can be a significance expense if you have a gigantic deductible. Besides, insurance rates for old cars are fairly cheap, so it's unlikely that you are saving significant money by having a high deductible
Drop Collision and Comprehensive Coverage
Lastly, it may also be helpful or you to drop collision and comprehensive coverage altogether. This is particularly true if your car is not only high-mileage but also extremely low-value. In such cases, it's unlikely that you will receive significant compensation if the car is written off in a crash. This means you will require significant money to buy a new car whether you are compensated for the loss or not. As such, carrying comprehensive coverage or collision coverage may be worthless.Share
19 July 2018
When I lost my job, I also lost my health insurance. I've never had to buy health insurance on my own before, so when I went to my insurance agent, I had no idea where to start. The coverage options, deductibles, co-pays, and premiums were confusing. I wasn't sure how to make sense of all of the tiers and doctor's networks. I created this site to help others who've never purchased health insurance before. The posts here are full of resources for insurance coverage, and I hope that it will help you to find the policy that's right for you.