As a vehicle gets older, the needs for auto insurance may change. Some risks may reduce if, for example, a car loan is being paid down and the insurance on the auto required by the lender is only required to be the loan balance. Even in this example, it may not be the best idea to lower vehicle coverage. Instead, at least keep it insured for the actual value if that happens to be higher than the loan balance.
In other circumstances, the risk for an older vehicle may go up due to the chance of having a mechanical failure. In general, the risk of liability to others does not change because they can be injured or killed by an old car just as easily as a newer one.
The best practices are to have an annual auto insurance review so that your agent at The Insurance Shop USA, serving Sandpoint, ID and the surrounding area, can give you good advice about what to adjust in terms of your auto insurance needs.
If your vehicle is critically important and you would not be able to live without it, it may be a good idea to have replacement cost coverage so that if it is totaled or stolen without being recovered you can get another vehicle of the same type. One strategy to consider is to get this kind of policy with a larger deductible to keep the premiums under control. You may be out-of-pocket for the deductible if something bad happens but still, get another vehicle. Talk to your agent about this.
When you have an annual review your agent will ask questions about any changes made to the vehicle in terms of who drives it, where it is parked, and how many miles it is driven monthly.
Each situation is slightly different so discuss the coverage types and levels with your agent to understand all the options. Call to speak with your agent at The Insurance Shop USA in Sandpoint, ID for all of your auto and other insurance needs.