Call Us (918) 341-2196 ☰ ˟
Logo
Call Us (918) 341-2196 to get your personalized insurance quote
  • Main Menu
    • Home Page
    • Employee Directory
    • Refer a Friend
    • Join Our Newsletter
    • Insurance Glossary
    • Important Links
    • Location Map
    • Contact Us
    • About Us
    • Privacy Policy
  • VFIS
    • VFIS of Oklahoma
    • VFISHRHelp.com
    • Training
  • Emergency Services
    • Oklahoma Volunteer Fire Department Insurance
    • Oklahoma Firefighters Accident and Sickness Insurance
    • Oklahoma Ambulance Insurance
    • Oklahoma Fire Department and Ambulance Insurance
  • Oklahoma Rural Water
  • Health Insurance
    • Health
    • Oklahoma Health Insurance Exchange
    • Blue Cross Blue Shield of Oklahoma
  • Our Communities
    • Catoosa Insurance - Home, Auto, Health, Commercial
    • Claremore Insurance - Home, Auto, Health, Commercial
    • Owasso Insurance - Home, Auto, Health, Commercial
    • Pryor Insurance - Home, Auto, Health, Commercial
    • Verdigris Insurance - Home, Auto, Health, Commercial
  • Blog
  • Contact Us
    • Employee Directory
    • Contact Us
    • About Us
Home > Blog > Understanding Auto/Car Depreciation
WEDNESDAY, OCTOBER 3, 2012

Understanding Auto/Car Depreciation

What is depreciation?

Auto insurance and your car's depreciation are more closely related than you 

might guess. Most of us are well aware of the concept of depreciation. It is that strange phenomenon by which our cars lose their value seemingly faster than we can even get them paid off.

Once you finally have paid back the bank and own your vehicle free and clear, looking up its fair market or blue book value can be very depressing. If you take five years to pay off a new car or truck, it might be worth half what you

 put into it if you're lucky. Depreciation is a frustrating thing to have to deal with as an auto owner. But it also directly influences your auto policy in ways you might not have thought about.

Financed Vehicles and Full Coverage


When we go to the auto dealership to buy that brand spanking new automobile, part of the bargain as the paperwork is signed is that we have to present some kind of proof of insurance before taking the car home with us. When you finance a new vehicle purchase, full coverage is required. In addition to liability insurance and any other coverage required by your home state, you must add collision and comprehensive coverage according to the wishes of the entity providing financing for the transaction. The combination of liability, collision and comprehensive insurance all in one policy is commonly known as "full coverage" auto insurance, although this is in some respects a misnomer.

 After all, there are other riders and endorsements available aside from these three. And no matter how much you insure a vehicle there will always be limitations and exclusions of coverage.

But with all that being said, suffice it to say that the cost of collision and comprehensive insurance ought to be figured into your automobile budget any time you set out to purchase a vehicle. Unless you can pay cash, these are as much a part of the deal as that spare ignition key or the floor mats. And honestly, when a car or truck is still new, collision and comprehensive insurance are very important and extremely valuable. If you get into an accident and total your new ride, you will still be obligated to pay it off per the terms of your contractual agreement. Having solid insurance protection can help you manage that payoff and get out from under a wrecked vehicle financially. So obviously there is a great deal of value in collision and comprehensive in a new car or truck.

When Depreciation Creeps In


But as time goes by, the value of these policies goes down. The only notable exception to this rule is in cases where you have chosen to take on replacement coverage rather than cash value collision and comprehensive insurance. But not every insurer even offers this option, and not many people can afford it while they are also making an installment loan payment on their new ride. It is hard enough just keeping up with the payment and insurance bill as it is.

Contact The Burrows Agency for Insurance Now!

The Burrows Agency is Claremore Oklahoma's top choice for insurance. Call us today for more information. 




Posted 3:18 PM

Tags: claremore, insurance, depreciation, auto insurance, car insurance, oklahoma, the burrows agency insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2016
  • 2013
  • 2012

  • insurance(15)
  • claremore(13)
  • oklahoma(13)
  • tulsa(7)
  • ok(4)
  • health(4)
  • burrows agency(3)
  • the burrows agency(3)
  • owasso(3)
  • commercial(3)
  • auto(3)
  • home(2)
  • ambulance(2)
  • earthquake(2)
  • vfis(2)
  • kansas(2)
  • rogers county(2)
  • catoosa(2)
  • commercial insurance(2)
  • flood(2)
  • auto insurance(2)
  • claremore insurance(2)
  • coverage(2)
  • blue cross blue shield of oklahoma(2)
  • business owners policy(2)
  • emergency service insurance(1)
  • burrows agency insurance(1)
  • oklahoma insurance(1)
  • oklahoma ambulance service(1)
  • business(1)
  • commercial auto(1)
  • flooding(1)
  • emergency service(1)
  • medical(1)
  • flood insurance claremore(1)
  • broken arrow(1)
  • ems insurance(1)
  • allstate(1)
  • hired(1)
  • tulsa auto insurance(1)
  • the burrows agency insurance(1)
  • do i need insurance(1)
  • arkansas(1)
  • dave burrows(1)
  • firefighter(1)
  • weather(1)
  • gun liability(1)
  • arkansas ambulance insurance(1)
  • bodily injury(1)
  • professional liability(1)

View Mobile Version
Contact us
(918) 341-2196 307 W. Patti Page Blvd. | Claremore, OK 74017
Quick Links
Home Our Products Customer Service Payment Options Report a Claim About Us Our Carriers Blog Contact Us
Location
307 W. Patti Page Blvd
Claremore, OK 74017
P: (918) 341-2196
F: (918) 341-9699



Twitter Icon Facebook Icon LinkedIn Icon Google Icon Yelp Icon YouTube Icon Instagram Icon


© Copyright. All rights reserved.
Powered by Insurance Website Builder