What Kind of Coverage Does a High Mileage Car Need?

If you’re driving a high mileage car, you may want to consider what kind of insurance you have and what you’ll need in the future. While high mileage cars may be older and may not be worth as much money, they are certainly valuable as transportation to their owners. Auto insurance for these vehicles should generally include only liability insurance. Liability is a requirement in most states. Other coverage options, such as comprehensive, aren’t usually the best choices for a high mileage car. A claim made against that coverage could easily equal the value of the vehcile. If that occurs, the vehicle is considered "totalled" for insurance purposes, and wil no longer be insurable.

As your auto acquires more mileage, things are more likely to go wrong with it. That’s true no matter what make or model your car is or how carefully you drive and maintain it. Because of that, it’s a much better idea to keep your vehicle insured properly. Another coverage option you most likely don’t need on your high mileage auto is collision coverage. Unless your vehicle is worth a lot of money or you absolutely couldn’t afford to replace it at all, you don’t need to keep collision insurance on it once it becomes a high mileage vehicle.

In addition to liability insurance for your auto, though, you may want to look at mechanical breakdown options as well as towing and rental car reimbursement. If you have those options, you’ll be able to get financial help if your car should break down. While a vehicle of any age can have mechanical problems and need to be towed, it’s statistically more likely for an older car with more miles on it to suffer problems. Insuring against those problems can give you peace of mind.

Do I need comprehensive, or liability auto insurance for a car that is high mileage, and I do not have a car payment?

Do Compare!People that own and drive a vehicle in California are required by law to carry liability insurance to compensate for injury or damage to another party or another party’s property that was a result of their own negligence. The law does not require you to protect yourself from either personal injury or property damage to your own vehicle.

California auto insurance minimum liability coverage is required whether you own your car outright or you are making payments to a finance company. If you have a high mileage car that is paid off, you do not have to carry comprehensive coverage, but you still are required to carry the state minimum liability coverage of 15/30/5.

A minimum 15/30/5 California car insurance policy will pay up to $15,000 to a single injured party or up to $30,000 for all occupants injured as a result of an accident you were found to have caused. It will also pay up to $5,000 in compensation for any property damage you may have caused as a result of the accident.

Comprehensive insurance coverage pays out if your car is stolen, damaged by vandalism, flying road debris, acts of nature or any other incidents that are not the result of a collision. Whether you should carry this type of coverage depends largely on the book value of your vehicle.

If you have a 20-year-old car worth $1,000 and it gets stolen, the best you could hope for is a check for $1,000 from the insurance company. If it costs you $200 extra to carry this coverage, you may decide it is better to assume the risk than pay the extra premium. Others, who are very risk averse may choose to pay the extra premium and have some more peace of mind.