While the value of your vehicle may be going down, the cost to repair or replace your vehicle has not. The labor costs and availability of parts have gone up and the market for used vehicles is hot. If you were to take your vehicle in today to get a fender repaired, the cost is not going to be less than it was two years ago. Quite the opposite.
Insurance rates are tied directly to the cost to pay claims. If a company experiences a large number of “glass” claims in a year, the comprehensive premiums may increase. If it is a big year of snowy weather and icy roads, collision costs may go up. Rates are directly related to the number and cost of claims made.
Add to this the technology available in newer cars. Most bumpers have cameras and sensors, windshields have sensors, and need calibrating. These are all new expenses that your old policy and rates didn’t account for. The advancements being made are exciting... and expensive. While we are happy to have the safety features that technology allows for, they need to be included in the repairs as well.
My advice is to review each year the cost of your insurance versus the value of your car. Can you replace it? Or fix it yourself with the money you would keep in your pocket if you didn’t buy the physical damage coverage? It may also be helpful to explore higher deductibles. This is an option to help keep your premiums lower. You’ll want to discuss it and consider the financial savings versus the potential costs to you at the time of loss carefully.