Auto Insurance-Why is it that as my car get’s older, my auto insurance rates don’t go down?
At first thought, it doesn’t seem to make sense but here’s why…
The majority of auto accidents that occur are not ”total losses”. Meaning, that the car is repairable. If you have collision coverage then your auto insurance company has to pay anything over your deductible.
If the car is repairable, and the cost of repairs doesn’t fall between the percentage that the insurance company deams the car should be totaled, than the insurance company has to pay for the cost of labor and parts. Since replacement parts and labor costs are not going down each year, unlike the value of your car, the insurance company has to pay today’s cost for the parts and labor, not the cost of parts and labor back in the year you bought it!
Since those costs continue to rise, the insurance rates increase to keep up with those prices. Call us at the Protection Connection1-800-996-9715 or visit our website for money saving tips and to see how we can save $$$ on your auto insurance .
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Related Information
Best Ways To Save Money On Your Auto Ins
1. Drive Less for and get a discount
Some carriers will discount your premium with a low-mileage discount if you drive less than 7,500 miles per year. Also ask your agent if you can receive a commuter discount for using public transportation.
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Uninsured Motorist Bodily Injury Coverage:
Uninsured Motorist Bodily Injury covers you, the other people on your policy and your passengers for damages or death caused by an uninsured motorist.