Find auto insurance in West Virginia that covers the cost of high car prices

2021 saw new and used car prices skyrocket. Supply chain issues, pandemic spending patterns shifting toward discretionary products, and a hot economy pushed car prices to historic highs. We’ve seen these prices all across the nation, and West Virginia is no exception.

Woman with auto insurance in West Virginia

How historic are these prices?

Used cars saw the largest price increase. In January 2021, the average used car sold for about $22,000. At the peak of the used car bubble, the average used car sold for just under $31,000. That’s about a 30% increase over the course of 18 months.

And what’s more? Used car prices had been declining steadily since 2015. Or at least prices stayed even for higher-end models. But now all previous models have been broken.

New cars have seen steep price increases as well. In January 2020, industry price averages for new cars were $38,000. Since then, prices have increased about 25%. Currently, a new car will cost you about $48,000.

Not only do these market conditions make buying a new or used car difficult, but they also impact auto insurance. If you own an auto insurance policy in West Virginia, you need to pay attention.

If you were to find yourself in an accident, would your current coverage be able to get you a replacement car?

Many motorists with older policies might be faced with a car downgrade were they to file a claim. Even drivers who are taking out a new policy might find themselves in a difficult spot if they underestimate the true value of their cars. 

Here are a few tips for finding auto insurance in West Virginia with car prices much higher than they were three years ago. 


Tip #1: Calculate the Actual Cash Value of Your Car

Insurance companies will base their payouts on the actual cash value (ACV) of your car. This is the amount of money that your vehicle is worth at any specific time. Just because you bought your car five years ago for $20,000 doesn’t mean it’s still worth $20,000. Your insurance company will subtract wear and tear from the total value. To calculate ACV, subtract wear and tear costs from the original cost of the vehicle.

Let’s say that you bought your car for $20,000 five years ago. We might estimate that the car depreciates at a rate of $1500 each year. Therefore, your car would be worth $12,500 today. This is, of course, an estimate. Each insurance company has its own, proprietary method of arriving at a car’s ACV. 

Once you come up with an estimated ACV, check to see what similar cars are selling for in your area. If your ACV is much lower than available vehicles, then you might want to consider additional coverage options to your auto insurance in West Virginia.

Tip #2: Adjust Your Comprehensive Coverage and Collision Coverage

In most cases, your comprehensive and collision coverages are set by your insurance company. You can try to adjust the deductible to get a lower payout (pay a higher premium for a lower deductible), but it’s not common to convince the insurance company to cover more than they say the car is worth. 

Insurance companies use highly trained actuaries and advanced algorithms, so you’re not going to have an easy time convincing them otherwise.

Tip #3: Add New Car Replacement Coverage Or Similar Add-Ons

However, there are insurance add-ons for West Virginia auto policies that can protect your car’s value if its price has gone up over the past few years. Speak to your USA representative today to see which option could be a good fit for you. 

1. New Car Replacement Insurance

In the event your car gets totaled, your insurance company will give you money for a brand-new car of the same make and model (minus your deductible). This is different from a standard policy, which would give you the depreciated value of your totaled car. This is good coverage for someone who likes to buy a new car every few years.

2. Replacement Cost Coverage

Replacement cost coverage makes sense for many auto insurance holders in West Virginia who have seen their car’s make and model increase over the past two years. For an extra coast, you can ensure that your insurance company gives you money according to the market rate for your automobile.

Your car might have been worth $15,000 five years ago, but now you’d have to pay $18,000 to buy it again. Replacement cost coverage protects you from price discrepancies like this. 

3. Agreed Value Coverage 

This type of coverage isn’t common when it comes to everyday cars that have risen in price due to inflation. Rather, this is a popular add-on for classic cars and vintage automobiles. In short, you and your insurance company will agree on the value of your vehicle. The price you choose is the price of the reimbursement in the case of damage. Depreciation costs and wear-and-tear are not considered, and this works well for cars that more or less live in the garage and only come out for special occasions.

Is Your Auto Insurance in West Virginia Enough for You? Talk to a USA Agent Today

Since the summer of 2022, we’ve seen car prices begin to come down. Prices are still much higher than they were two years ago, but the market seems to be cooling. However, it might be a good idea to add extra coverage to your auto insurance in West Virginia until you know you’re in the clear. 

Our team is available to speak to you about your West Virginia insurance needs. Let us know the make, model, and year of your car, and we’ll give you our expert opinions. Since we provide quotes from the nation’s leading auto insurance companies, you can be sure you’re receiving a great balance between cost and coverage. Let’s get connected today.