It is a good idea to have an auto insurance review at least once per year and more frequently if some substantial change occurs. Work with your agent at Family Insurance Associates, serving Ruidoso, NM, and the surrounding area, to make sure your auto insurance is adequate.
Your agent will give you a recommendation based on any changes that occurred since your last review. Be sure to inform your agent about moving, using a vehicle differently, letting other people drive it, any custom modifications that were made, and where it is stored.
Replacement vs. Actual Value
For a new or fairly new vehicle that is less than five years old, having replacement value coverage is probably a better choice than only insuring actual value. With replacement value, if your vehicle is totaled, you may be able to make a claim that replaces the vehicle with a brand-new one of the same model type.
For an older vehicle, insuring the replacement value may not be practical. You may choose to insure only the actual value. The actual value is what you could sell the vehicle for on the open market. If you are insuring a lower value, your premiums will be reduced.
As your car becomes older, you may want to adjust the comprehensive portion of your auto insurance to cover the lower value of the vehicle.
Deductible
Your choice of a deductible will impact your monthly premiums. One technique to consider is to have replacement value for newer cars along with a high deductible to keep premiums lower. The deductible will be the amount you are out-of-pocket if the vehicle is totaled.
As the vehicle gets older, you can switch to the actual value and lower the deductible to have less out-of-pocket expense if the vehicle is totaled.
Summary
Lowering the insured value to the actual value of an older vehicle is something to consider with each annual auto insurance review. To get a review and a quote, contact your agent at Family Insurance Associates in Ruidoso, NM by calling 575-257-0998 to discuss your options.
