Why is it important to review the value of a vehicle from the point of insuring them?

Question

Why is it important to review the value of a vehicle from the point of insuring them?

Answer 1

Whether ur buying a new car or used knowing the value of the vehicle will help u judge whether the insurance quote is matching ur specific policy needs and that of your state insurance commission.  You need to know what the insurance agency will offer u if the vehicle is totaled and you have full coverage.  If the value of the car is not worth putting full coverage and u are willing to take the liability of having an accident and not getting reimbursed for your vehicle then the cost of insurance could prove to be a good fit.

But if it's the sole mode of transportation and you need the seed money to replace it u need to know how much you'll get for it.

Color of vehicle, type, features and how much protection: IE airbags, anti lock brakes, and any other safety equipment could get u additional savings.  It varies from state to state the amount of insurance that a driver must have to meet basic standards.

Answer 2

As time goes by, the official value of a vehicle goes down. When the value of a vehicle goes down, then if you totaled it, the insurance company would not have to pay out as much. If they would not have to pay out as much, then they are taking on a smaller risk by insuring your vehicle. Since they are taking on a smaller risk, then they would most likely charge you less for your insurance premium.

So in a nutshell, it is important because it can save you money!