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Familiarizing Yourself with Used Car Insurance


Insuring your used car is basically the same as insuring a new one. The same basic requirements and guidelines apply, with your main objective to protect yourself from liability in case your vehicle gets damaged or the people inside your car suffer injury in an accident. The only significant difference with a used car is that the insurance company’s potential loss is lower than that of a new car. This lowers your used car insurance premium since the company or firm charges you less for the comprehensive and collision coverage. However, the same liability rates apply, since used vehicles can also do the same amount of damage to other vehicles, property and people.

If you are thinking of purchasing used car insurance, you need to take a lot of important factors into consideration. You have to know more about the minimum requirements, which varies from state to state depending on your location. You must know the absolute minimum limits required by law. However, it is highly suggested that you get additional coverage in case of property damage or bodily injury.

You can consider requesting for higher deductibles to get lower rates. Brand new cars normally have lower deductibles since the price of new cars is higher than used ones. However, you have to bear in mind that when you have higher deductibles, you would have to pay more from your own pocket in case of a claim.

One of the most vital factors that greatly affect the rates of insurance for your used car is your own driving record. Most car insurance companies also consider your car’s history and condition before giving you an auto insurance policy or coverage. If your driving history is questionable, this will obviously lead you to increased rates. Thus, it would definitely be wiser to try your best and maintain a good driving record before setting out to purchase a used car insurance policy or coverage.

Most car insurance companies take another important factor into consideration: the place where you drive and park your vehicle. If your driving is limited to rural areas and smaller towns, you have a lower risk of getting into an accident than driving in the city. Likewise, car insurance providers would not feel confident in giving you a policy if you park in places with high rates of car theft.

Getting your used vehicle insured is not difficult at all. You just need to understand some vital factors and requirements before you set out and get a used car insurance policy.