Introduction
Older cars often become under-insured as depreciation occurs, accessories are added, or policies go outdated over time. Many owners simply renew their old policy without checking the actual coverage value, increasing the risk of significant financial loss during a claim.
Understanding the causes and how to fix them immediately helps older car owners ensure their policies remain relevant and coverage is sufficient.
1. Depreciation of Older Cars
Older cars depreciate each year. If the policy is still based on the original value or system recommendations that are too low, the policy becomes under-insured. This is most evident for cars over 5–10 years old.
2. Outdated Accessories Not Updated
Many owners add accessories or upgrades such as rims, audio systems, dashcams, or body kits, but the policy iMany owners add accessories or upgrades like rims, audio systems, dashcams, or body kits, but they fail to update the policy, leaving the added value uncovered and increasing the risk of under-insurance.
3. Renewing Old Policies Without Review
Owners often renew old policies without checking the car’s current market value. As a result, the old coverage continues even though the car’s value may have increased due to repairs or added accessories.
4. How to Fix Immediately
- Check your car’s current market value before renewing
- Report any accessories or upgrades to your insurer
- Increase coverage if needed, even if the premium rises slightly
- Use licensed platforms like BJAK to compare policies and get accurate advice
These steps ensure older car policies remain sufficient and reduce the risk of financial loss.
Conclusion
Older cars often become under-insured when owners fail to update their policies, account for depreciation, or report added accessories. With routine reviews, policy updates, and using licensed platforms, older car owners can ensure adequate protection and safeguard against financial loss in the event of an accident.
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