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Insurance Premiums and Vehicle Value

Why Do My Insurance Premiums Increase, Even Though My Vehicle’s Value Decreases?

The answer to this question is that most insurance claims are small claims. This is when a bumper, a door, or a side panel are damaged in a minor accident. Parts for older cars are scarcer and more difficult to find if you must replace something.

Your vehicle may be worth a lot less than it was when it was brand new, but the insurance company must pay more every year to cover those small claims. So even though a total loss payout would be much less than when your car was brand new, all those small claims [that are more likely to happen] cost your insurance company more annually. This causes your premium to stay the same or slightly go up.

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