What does this terminology even mean?

As a car owner in Oro Valley, AZ, it is essential to understand the rather insurance-esque terms “replacement cost” and “market value” in order to be educated if you ever need to file an insurance claim.

The Replacement cost is in reference to the amount of money that it would take to completely rebuild or replace your car should disaster strike, be it a vehicular accident, the result of a storm, or even if it is a freak-mishap (a tree falling on the hood of your car while it innocently sits in the driveway). This figure is determined based on current prices for the labor, material, taxes, fees, and plans. Speak to an agent at Old Pueblo Insurance to discuss this, as well as the following.

Market value refers to how much your car would sell for in its current state: wear and tear and all. This type of value can be very hard to determine without the aid of an expert, as it changes according to the ebbs and flows of the car market, in addition to the car’s attributes on the inside as well as the outside. To get a round-about idea of the value of your car, you can always compare it to others of the same make, model, and year, this is not always the precise figure though. For a more accurate appraisal, a professional should be contacted. 

Contact an agent at Old Pueblo Insurance, serving the needs of those in the Oro Valley, AZ area, to discuss these terms in more detail, and as they pertain to you, in particular.

When buying a vehicle, there are different elements to keep in mind when it comes to how much you’ll eventually pay for auto insurance. Some of the factors include your current driving record, if you have any points on your license, how long you’ve been driving and so on. Of course, a good deal of the insurance costs revolves around the ability to purchase and obtain replacement parts and the age of the vehicle. At Old Pueblo Insurance, we want to help you save money on auto insurance, whether you live in Oro Valley, AZ or the greater Tucson area. 

Used Is Typically Less Expensive to Insure

Generally speaking, a used vehicle is less expensive to insure than a new vehicle. There is the occasional exception, but newer vehicles have more expensive tech in place. It is also harder to find used replacement parts, which means all repairs must utilize new parts. Buying a vehicle that is four or five years old can save a good amount on the sticker price and your insurance cost. 

Rare Models

Of course, there are rare trim models. Perhaps you purchase a Mustang Boss edition or another vehicle model with limited production. In this case, the limited production vehicle likely will cost more than a brand new vehicle. This comes down to the cost of replacement parts. With fewer models, there are fewer available parts. Manufacturers of the parts will charge more as well, which is what forces the insurance up. 

It doesn’t matter if you live in Oro Valley, AZ, Tucson or further out, Old Pueblo Insurance is here to help you save money on your auto insurance. If you want an affordable vehicle that also costs less in insurance, consider purchasing a used vehicle.