Contact: (217) 355 9075 - Address: 702 Bloomington Road. Suite 205. Champaign, IL 61822 - Email: dave@insuringchampaign.com

Why do rates go up as the value of my vehicle goes down?

Why do rates go up as the value of my vehicle goes down?

Every year your car gets another year older and the value depreciates a little more...So why do your insurance rates never go down?

It's true your car value goes down significantly every and the average depreciation after 5 years is 60%, but your insurance rates stay the same (if you are lucky) or go up each year. 

There are 3 main reason for this .

1. The cost to repair your car or truck never decreases.  Your insurance pays for the the repair of your car (if you have collision and comprehensive coverage) and the body shop doesn't pay it's employees less to work on a 2008 Ford than they do for a 2015 Ford. The costs at a body shop only increase each year.

2. As your car gets older parts to repair can get harder to find. In fact if you keep your car for 10 years you might see a slight bump in premium because it gets increasingly difficult to find parts to repair your car.

3. One major part of your insurance is Bodily Injury Liability coverage. That is what pays the medical bills of people you may injure in another vehicle in an accident. If you have been to the Doctor or Hospital lately you know that medical bills have not decreased.

So even though your car is older and has less value, the cost of the benefits of your policy are increasing each and every year and that is why it is unlikely you will ever see your rate go down.

If you would like a quote on your car insurance, give Rueck Insurance a call at 217-355-9075. As an Illinois Insurance Broker we shop your rate with over 10 companies to find you the best deal. 

 

 

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Rueck Insurance is your independent, one-stop insurance center for all your personal and business insurance needs in Illinois. Insurance shopping is easy when the Protection Team provides you with multiple quotes to choose from. You will always know you are getting the best coverage at the lowest possible price.

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Rueck Insurance is your independent, one-stop insurance center for all your personal and business insurance needs in Illinois.

702 Bloomington Rd#205
    Champaign, Illnois
(217) 355-9075
dave@insuringchampaign.com

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