Auto Insurance Premium Savings Tip
Thursday, September 02, 2010
Typically, auto insurance companies sign up policy holders using the Blue Book market value of our cars. Once signed, the insurance company has the original value of the vehicle on its books and generates premiums based on that value.
But, as you are probably aware, if you are in an accident and ‘total’ your car, you will only receive the current book value on your vehicle.
What the insurance companies don’t want you to know is you can call them every year and adjust the value to the current Blue Book value so that your premiums are more in line with insurance coverage if the car is totaled.
The potential cost savings to you? Depends on your car and the condition…but it can amount to a lot!
For example, if you bought and insured an Audi S6 in 2002 for $45,000, you may still be paying premiums on a $45,000 car. But that Audi S6 has since depreciated to, say, $19,000… So shouldn’t you only be paying on the $19,000?! Why? Because if you are in an accident, the insurance company will only reimburse you up to $17,000, not the original 45,000!
- Scott Askew
Posted in: Intown Living
