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Do you need auto insurance for used cars?


While having insurance for even used cars is a requirement in most states, there are some advisable ways on how you can save few bucks on some options. Always make sure to have your car (old, new or pre-owned) insured before you hit the roads. But be reminded that the kind of coverage and the amount that you can be qualified of would depend on the value of your cars and your needs as well.

Any licensed driver is required to carry auto insurance as required by the law of the state. A requirement in the minimum coverage amount is covered by the financial responsibility Limit of the state where the driver belongs. This is not the most recommended way of determining the coverage amount fit for you though. All states have a requirement for third party liability insurance where the cost of accident caused by injury in the body or damage on the property will be paid to the victims except the person himself. This said coverage does not cover your expenses on your own medical treatments or cost of repair.

While following the minimum state requirement of your insurance means complying to the law but this may also be risky for you so with this, it is better to just follow the state’s minimum requirements as your guide in finding the best policy for you that would best cater your needs, fit your income and be able to protect the people and properties that you wish to secure.

The Comprehensive Coverage and Collision Coverage are basics in most policies in auto insurance though it is only optional for most states. When used together, you can get protected (when it comes to costs) from the damages which are inflicted by another car or vehicle, theft, natural calamities and vandalism. The cost of losses could be high so it is important that you know the real value of the used car.

Say your vehicle’s value is lower than a thousand dollars, the Comprehensive or Collision Coverage deductible might be higher than its cost. Now, when you file a claim, though your car was a total loss, the amount maxed that you’d be receiving is the actual value of your vehicle which is subject to depreciation and the deductibles.  Making some adjustments on your deductibles or completely setting aside Collision Coverage and Comprehensive Coverage is a seen way to have some savings on used car insurance.