Is auto insurance for discontinued cars expensive?
If Ford or Chevy discontinues your vehicle, your car insurance policy should not be affected too seriously. The resale value of the vehicle could decrease, while repairs could become more expensive.If the entire brand was discounted — such as Saab or Mercury — you might have a hard time acquiring parts or finding affordable repair services.
Read on to learn more about how to find affordable insurance for recently discontinued vehicle models.
The Genesis sat within Hyundai’s luxury division. The 2016 Hyundai Genesis — the final year model — had an average six-month premium of $718 and an MSRP of $38,750. While the Genesis is a little more costly to insure than the average sedan, you can lower your monthly payments by selecting Erie and GEICO as your insurance provider.
You should still be able to find coverage for the Genesis, regardless of its status as an orphaned model.
The Dodge Dart was discontinued because of sagging profitability, but it can be bought and insured as a used vehicle at a reasonable cost. The latest model, from 2016, had an MSRP of $16,995 and an average six-month insurance premium of $411.
If you own a Dodge Dart and are seeking affordable insurance, consider Progressive or State Farm.
The Scion tC, one of the most popular vehicles in the Scion-Toyota family, was discontinued in 2016 after a merger. This vehicle was fairly popular, with nearly 60,000 units sold in 2015. If you’re a Scion tC owner, the cheapest car insurance provider could be USAA or GEICO.
The Honda CR-Z coupe was canceled after years of underperforming sales. During its lifespan, the hybrid hatchback was inexpensive to insure and moderately expensive to buy, compared to similar vehicles. The 2016 MSRP value of this vehicle was $20,295, but the average insurance rate was just $444 per six-month period. If you own this vehicle, consider Progressive and State Farm in your search for car insurance.
The last canceled car we’ll look at it is the Chrysler Town & Country. The Town & Country was replaced by the Pacifica after a fairly successful run. On average, the Town & Country was fairly affordable to insure and buy. The 2016 model had an MSRP of $29,995 and an average six-month premium of $303.
GEICO and USAA offer the cheapest rates for this canceled vehicle.
From an insurance perspective, the impact of a discontinued car is minimal and may depend on individual circumstances. If your vehicle was discontinued because of poor sales, expect your resale value to dip slightly. Keep in mind, however, that most vehicles depreciate rapidly.
This process varies by vehicle make and model. In theory, if the manufacturer of the vehicle still exists, you should be able to get repairs at a service center. Each of the aforementioned orphaned vehicle models was manufactured by a currently extant brand.
If the maker of your vehicle goes out of business, finding parts could be a challenge. For example, finding generic or aftermarket parts for a Suzuki or Saab can be difficult because the parent company no longer manufactures cars.
A discontinued car can be a bargain, but you should consider the circumstances surrounding its discontinuation and the availability of parts before taking the plunge. If the vehicle was discontinued because it had poor safety marks, the discounted purchase price might not be worth it. Furthermore, if the entire company went out of business, consider the difficulty of replacing parts or commissioning repairs.
On the other hand, many vehicles are discontinued simply because they fall out of favor with the driving public. This could lead to a bargain on a good used vehicle. Our best advice on whether or not to buy a discontinued vehicle is to do your research. Understand why the vehicle was discontinued and the ability to find repair parts if you have an accident. For the most part, you should not have an issue getting a car insurance policy with a canceled vehicle. Enter your zip code below to get started.
