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Looking Into Used Car Insurance Before Buying Used Car

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Do not think that just because a used car is not brand new that you will automatically get lower premiums on your used car insurance. It does not work that way. Insurance companies consider a lot of factors first before computing for insurance rate on your used car. Hence, before you head out at a car auction sale to shop, learn first about how to lower your insurance premium. Otherwise, you might end up exceeding your budget in buying a secondhand car and an insurance policy.

Few things you have to keep in mind. First, consider a car’s age. The older a car is, the more susceptible it is to breakdowns, and hence more prone to accidents. Insurance companies classify older cars as higher risk vehicles and will be charged with higher insurance rate.

Another factor is a car’s mileage. This is the distance a secondhand car has already traveled in total before the original owner decided to put it up for sale. The longer the distance traveled the higher premium on used car insurance. Insurers explain that looking at the mileage is a good way to check on a car’s wear and tear condition. If the mileage is high given that a car is only 3 years old, it means the car was used very frequently.

How about vintage cars? This type of car is also considered secondhand. Vintage cars will incur higher premiums on used car insurance for a few good reasons. First, its parts and accessories will be more difficult to find, and therefore its repairs will be more costly too. Second, restoration costs will likewise be more expensive. Vintage cars are fragile that in most cases its premium on insurance is even higher than an ordinary brand new car. Think twice before buying a vintage car. It will not be practical for everyday use.

Used modified cars are also like vintage cars in the sense that it will also raise premium rates on used car insurance. If a previous owner altered the engine system or some car parts, this used modified vehicle will be classified as high risk. Just like vintage cars, looking for replacement parts will be more difficult and expensive.

While browsing for used cars in an auction shop, you might also want to check what devices are installed. Anti-theft devices like security alarms are valid reasons for insurers to give you premium discounts. If the car you want to buy does not have this yet, check if alarm installations will still fit your budget.