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Why am I paying $200 a month for a car that is worth $2500?
"If the actual cash value of my car is only $2500, why is my insurance so high? I pay $200 a month and have only had a couple of speeding tickets, no accidents."
Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“The cost of insurance isn’t impacted by the value of your car as much as you would expect. The vehicle’s value mainly affects the price of
comprehensive coverage
and collision coverage
. If your car only has a value of $2500, you will want to think about removing full coverage to save some money. Liability coverages
is another significant part of your policy. If you have a few speeding tickets, your policy might be surcharged. About three years after your last ticket, the surcharges will fall off and your rate will go down. The price of liability is based on many factors like past driving history and the cost of medical expenses where you live. The value of the car only plays a factor in regards to safety features. Newer cars tend to have better safety features and the result is a lower price.”
View full answer
- Gregory R.
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