Uninsured motorist coverage. For these drivers, the fact that state law imposes stiff penalties on uninsured drivers is of little consequence. This insurance covers the policyholder and any passengers riding in the car at the time of the accident. Premium costs vary with the amount of the deductible, the type of car and the type of coverage. This coverage only makes sense if your car is fairly new.
Older cars have low actual cash values.
That's because the repair bill for anything more than minor damage to an aged vehicle will usually exceed the actual cash value. Chances are that the actual cash value of a totaled older vehicle won't be enough to cover its true replacement cost, especially if your car had been well maintained. Comprehensive coverage protects a vehicle against theft, damage from falling objects, vandalism, earthquakes, floods, collisions with animals, and a host of other risks. Don't waste your money if your car is older than three years. Unsafe drivers are now universally penalized with increased premiums.