Buying an auto insurance policy for a used car is basically similar as buying insurance for a brand new car. You will need the same principal requirements, with your main objective to protect yourself from liability in case your vehicle gets damaged in an accident. The only apparent difference with insuring a used car is that the insurer’s potential loss is significantly lower that that of a brand new car when the used car gets damaged or stolen. This decreases your used car insurance rates since the insurance company charges you less for the comprehensive and collision coverage. The same liability rates apply, however, since used cars are also capable of doing the same amount of damage to people, property and other vehicles.
If you are a car owner planning to get used car insurance, you need to consider a number of important things. You have to be familiar with the minimum requirements, which change from state to state, depending on where you reside. It is also important to know the absolute minimum limits required by your state. It is advisable to purchase additional coverage in an event where there is bodily injury or property damage.
If you want to decrease your rates, you can consider increasing your deductibles. The deductibles of new cars are normally lower since new cars cost more than used ones. However, understand that if your deductibles are higher, you would have to pay more from your own pocket in case of a claim.
Your own driving record is one of the most significant factors that determine the insurance rates for your used car. Before giving an insurance policy, most auto insurance companies also check the history and present condition of your used vehicle. Obviously, a questionable driving record will lead you to higher premiums. Thus, it would serve to your advantage to keep your driving record clean before setting out to buy a used car insurance policy.
Another important factor that most auto insurance companies take into consideration is the location where you drive and park your used car. You have a lower risk of getting in a collision if you drive in smaller towns and rural areas as compared to busy urban roads. Likewise, if you park your used car in places where there are high rates of car theft, insurers would think twice before giving you a policy.
Getting an auto insurance coverage for your used car is easy. You just need to know more about the important requirements before choosing the best used car insurance policy for you.