How To Insure Your Older Car
Oregon law requires drivers to carry certain auto insurance policies. When you drive an older car, you may be tempted to save money by carrying only the minimum legal coverage. Here’s what you need to know about best practices for insuring a car that’s been around the block.
The optimal dollar amount of your policy depends on several factors, including the value of your car, your driving record, and your net worth. You must also carry the minimal legal coverage in Oregon of at least:
- Bodily injury: $25,000 per person and $50,000 per accident
- Personal injury protection: $15,000 per person
- Bodily injury for uninsured motorists: $25,000 per person and $50,000 per accident
- Property damage: $20,000 per accident
The Case for More Liability Coverage
If another person is injured in an accident in which you are at fault, your bodily injury coverage will pay their medical bills. If these exceed $25,000, however, the person can sue you for the remaining amount. If you own assets such as a home, vehicle, second property, retirement accounts, or investments, these could be taken in a court judgment.
Increasing your coverage amount beyond the legal limit is a sound financial move. As a general rule of thumb, you should have at least as much liability coverage as the value of the property you own. For example, if your home is worth $150,000 and you have $100,000 in equity, protect the equity with at least $100,000 in liability coverage.
Comprehensive and Collision
Comprehensive coverage covers loss to your car caused by fire, vandalism, or theft. This type of policy is usually affordable, so many drivers choose to keep it even on an older car. Most lenders require comprehensive coverage on financed cars, so that’s a consideration if you purchase an older car.
Collision coverage pays for damage that occurs in an accident. Compare the cost of your annual premium to the value of your car to determine whether you should retain this coverage. In many cases, it makes sense to drop a collision policy on vehicles that are more than eight years old.
Focus1 Insurance Group provides auto insurance coverage from several major companies, so we can advocate on behalf of our clients to get them the best rate. We have offices in Medford, Portland, and Bend, so it’s easy to get in touch and get your free quote today.