When your vehicle is essentially worthless, the car insurance you need is based on your personal financial situation.
Of course, if your car is registered and you are still driving it, then you will need any mandated state-mandated insurance such as Bodily Injury Liability and Property Damage Liability. The age and mileage on the car do not determine what limits you should have on your Liability coverages.
Did you sock away a lot of money by driving this old car? The more assets you have to protect, the higher your Liability limits should be. No matter how old your car is, it can damage other people's property and cause bodily injury.
If you can afford it, the insurance industry recommendations are $100,000/$300,000 for Bodily Injury Liability and at least $50,000 for Property Damage Liability. If you cannot afford this, much then get what you can afford, even if it is just basic minimum Liability limits.
Physical damage coverages of Collision and Comprehensive, often referred to as full coverage, are what protect your car if it is damaged. With this type of coverage the age, condition and mileage of your vehicle does make a difference.
To determine if you should keep full coverage on your vehicle you first need to find out what your car's actual cash value (ACV) is at this time.
You can calculate your car's basic value by using valuation tools such as Kelley Blue Book or NADA Guides. An automobile insurance company tends to determine the replacement value for a vehicle that has been totaled as a value somewhere between Wholesale and Retail. You also can research comparable vehicles that have sold in your area to help determine its fair market value.
After determining the value of your vehicle, look at what you are paying for your physical damage coverages. You usually want to continue to carry these coverages until it does not make economic sense to do so. In other words, you should stop carrying full coverage car insurance when your deductible and its premium starts to equal your vehicle's actual cash value.
Another way to help determine your car insurance needs is by using our Car Insurance Coverage Calculator that offers basic recommendations for typical coverage, limits, and deductibles needed based on the answers you provide.
You may decide in the end that full coverage is no longer need for your car because the value is too low however you still have assets that you want to protect so will want to keep higher Liability limits. Either way, CarInsurance.com can help you obtain affordable auto insurance.