Many car insurance customers are surprised when their rates do not decrease as their car gets older. Everyone knows cars depreciate in value as they get older. Many brand new cars decrease in value by as much as 30% as soon as you drive it off the dealer’s lot.

If your car is worth $10,000 now, and it will be worth only $7,000 three years from now, shouldn’t your Comprehensive & Collision insurance coverage for your car cost less 3 years from now? If your car is stolen today, the insurance company will pay you $10,000 less your deductible. If your car is stolen 3 years from now, the insurance company will pay you $7,000 less your deductible.

Isn’t it a rip off you are paying the same rate (or more! — if your insurance company has raised their rates) and getting less coverage?

I’ll explain why insurance companies don’t lower your Comprehensive & Collision rates as your car depreciates, and what you can do to make sure you pay low auto insurance rates.

Insurance companies set the rates for Comprehensive & Collision coverage when the latest model year hits the show room, and base the rates on the average claims costs for the prior year’s same make, model, sub-model, & trim option, adjusting the price slightly higher for the new model year.

For example, the rates for the 2013 Honda Accord LX, will be slightly higher than the 2012 Honda Accord LX. If the actual claims costs for the 2013 Honda Accord are higher or lower than expected in the next few years, the Comprehensive or Collision rates may be adjusted, up or down, based on the actual claims experience.

However, most often the rates you pay for Comprehensive & Collision for the 2013 Honda Accord LX in 2013, will be the same rate you pay in 2018, assuming the insurance company does not have an overall rate increase.

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When you get auto insurance quotes, the insurance company asks you for the VIN (Vehicle Identification Number) number of your car. The insurance company’s computer system reads the VIN to know the exact model of your car, and assign the rating symbols the insurance company uses for that model, to determine your Comprehensive & Collision rates.

Although most insurance companies use the exact same rating symbols, the rates they use for various model cars can be very different. Some insurance companies may have very good rates for certain car models, which is why it is a very good idea to shop your car insurance when you have a big change, like replacing or buying a car.

How you can keep your auto insurance rates low as your car gets older.

Each year, do some research into the sale prices of cars close to your car’s year, make, & model with the same trim, in similar condition & mileage, in your area. Know the market value of your car & understand the insurance company will not pay you more than the market value of your car, minus your deductible.

For example, if the value of your car is now only $3,000, you have a $1,000 Collision deductible, and Collision coverage costs you $400 a year, you may want to consider dropping Collision coverage.

The best thing you can do, before you look at dropping insurance coverage, is to shop your insurance with all the leading insurance companies each year. You may be able to save $100s of dollars without having to go with less coverage.

How much do you pay for Comprehensive & Collision auto insurance coverage? Tell me about it. Please leave a comment on my facebook page. Follow me on Twitter for important insurance consumer news and new blog entries at CarInsWatch.