I’ve been thinking about something with car insurance and was hoping someone could explain it. So, I bought a car for $50k and pay around $200 a month for insurance. A few years later, the car’s value drops to $35k, but my insurance premium stays the same.
Why doesn’t my insurance go down as the car’s value decreases? Shouldn’t it adjust based on how much the car is worth now?
Anyone else wondered about this or know why it works like this? TiA
There are actions you can do to potentially lower your auto insurance rates, even if it’s not always a given. These include raising your deductible, driving a cleaner record, or looking for a new insurance provider.