In principle, not much is actually different when it comes to insurance for both new and used cars. The same basic features are offered in both new and used car insurance packages.What will differ, however, would be the small details outlining the packages themselves. But when it comes to primary purpose, both kinds of policies still aim to avoid liability in the unfortunate case of a vehicular accident. This would mean liability in terms of injuries and damages incurred to the vehicle, the passengers it was carrying, other vehicles, as well as the passengers that these were carrying.
The most crucial difference obviously lies in their price tags. Expectedly, new car insurance packages would come at more expensive price rates while the used car insurance ones would be significantly cheaper. Just why is that then? If a new car is irreparably damager, or worse, stolen, then the insurance company would stand to lose a lot of money. However, if the damaged or stolen car were a used one, then the insurance company would not lose that much money, as compared to the first scenario. Because the risk to lose a lot of money is low, then the company can also charge the policyholder lower monthly premiums.
Now that you are considering getting used car insurance, you need to look into your driving record. Just like purchasing insurance for new cars, you should make sure your driving record is spotless and free of traffic violations, DUI’s, speeding tickets, and the like. Having a turbulent driving record would easily render you the reputation of being a risky driver and, consequently, a risky client to deal with. Naturally, insurance companies would charge risky drivers high monthly premiums. The easiest way to maintain a clean driving record is to drive carefully.
You should also consider the location of your car, the area where you will be driving mostly, and your parking arrangements as well. If you frequent quiet residential areas, then you stand a good chance at getting lower premiums. Likewise, if you have a secure parking spot for your car, this would garner lower charges, too.
Lastly, the type your car you drive would also affect the rate of your used car insurance policy. The more modern, high-performance cars would come with higher premiums because these cars require more maintenance to begin with. But this does not mean you should go for cars that are of low performance since these would just lead to higher premiums still. The wise choice here is to go for a family car of low mileage. This type of car would then be the most prudent that you can go with.
