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Understanding Used Car Insurance


With the recession biting deeper, car manufacturers in the U.S. are suffering record losses. More and more Americans are choosing to buy second-hand cars to save money. Buying used cars can have its advantages and disadvantages.

In the past, car shoppers found haggling with used car dealers too tiring and oftentimes useless. Second-hand cars also lacked basic warranty. On top of this, many used cars suffered from shoddy maintenance and poorly done repairs. Purchasing used cars in the past was more of a risk than a bargain. Finding the perfect used car insurance coverage became an ordeal for many car owners.

Today, drivers and car owners today are more fortunate. While having car insurance is required in almost all states, the premiums that motorists have to pay for are not primarily based on the value of a car. This gives car shoppers something to look forward to when buying used vehicles. Instead, insurance companies assess the driving experience of the motorist and the particular car model itself.

Used car insurance is not at all that different from regular vehicle insurance. Because the insurers pay more attention to the actual car model and its safety ratings, a cheaper car does not necessarily mean lower premiums. In the same manner, a more expensive vehicle will not mean more costly insurance.

To get lower used car insurance, car owners should ask the dealer where they bought the vehicles from about warranties. Some used car dealers provide warranty for many of their used vehicles but these may vary greatly. Having a complete list of the car’s repair history and past damage can help insurers come up with the best possible premiums.

Car shoppers looking to save more money can skip car dealers completely and deal directly with car owners selling their vehicles. While this can get rid of unwanted salespersons and their commissions, buyers should take proper precaution when buying directly. Without any professionals to assess how safe a car is, buyers can be gambling with their lives. To be on the safe side, potential buyers must bring the vehicles to car mechanics or shops for their opinion. The absence of a dealer can mean huge savings but this could also mean higher risks.

Before deciding on a particular car model, however, car buyers should first research the opinions of drivers who own the same car model. The internet is a great tool for buyers to browse through used cars. Knowing the pros and cons of a second-hand vehicle can help buyers find out how they can save on used car insurance.