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Home » Do I Need Automobile Insurance for a Low-Value, Old Car? 
June 5, 2024
McCartan Insurance Group

Do I Need Automobile Insurance for a Low-Value, Old Car? 

greyscale photo of classic vehicle with automobile insurance on groundIf you own an older car with a low market value, you might wonder if purchasing automobile insurance is necessary. While it might seem logical to skip insurance to save money, there are several crucial factors to consider.

Legal Requirements in Iowa

Regardless of your car’s value, Iowa law mandates that all drivers carry a minimum amount of liability insurance, including property damage and bodily injury liability coverage.

These liability coverages are designed to help cover damage you may cause to other drivers, passengers and their property in an accident.

In Iowa, failing to meet these requirements can result in significant penalties, including fines, license suspension and vehicle registration revocation.

Financial Protection

Here’s how insurance can provide crucial financial protection:

  • Accident costs—If you’re at fault in an accident, liability insurance may help cover the other party’s medical expenses and repair costs. Without insurance, you could be held personally responsible for these costs, which can quickly escalate into thousands of dollars.
  • Medical expenses—If you’re injured in an accident, having medical payments coverage can help pay for your medical bills, regardless of who is at fault.
  • Legal fees—If you’re sued following an accident, liability insurance can help cover legal fees and settlements, protecting your financial stability.

Cost-Effective Auto Insurance Coverage Options

You can adjust your insurance coverage to make it more affordable while still meeting legal requirements and protecting yourself financially.

Consider opting for liability-only coverage that meets the state’s minimum requirements and covers damages to others, keeping your premiums lower. Many drivers choose not to purchase full coverage car insurance on a lower-value car, as even minor damage to the vehicle can total the car.

Comprehensive and collision insurance costs may not be worth the potentially low payout after a covered incident or accident.

Increasing your deductibles can also help reduce your premium costs. While you’ll pay more out-of-pocket in the event of a claim, it can make your monthly premiums more manageable.

Your agent can help find discounts offered by insurance providers, such as multi-policy discounts, good driver discounts or discounts for having safety features in your car.

Contact Us

Even if your older car has a low market value, purchasing automobile insurance is still necessary and beneficial. Iowa law requires minimum liability coverage, and having insurance provides essential financial protection and peace of mind.

By choosing cost-effective coverage options, you can ensure you meet legal requirements and safeguard yourself against significant financial risks.

Contact McCartan Insurance Group in West Des Moines, Iowa, to learn about your Iowa car insurance options and get a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

 

 

Categories: Blog

Tags: automobile insurance, collision insurance, comprehensive insurance, coverage options, market value, minimum liability, older car