Automobile insurance is something every car owner or driver should have because the law dictates it. Insuring new vehicles would not be a difficult job because normally, owners would want their newly-bought automobiles safe and protected from any unfavorable circumstances. However, for those who can only afford used cars, auto insurance may be a little complicated, thus it needs to be explained. Taking a look at some auto coverage quotes might be a good point to start before choosing the type of used car insurance for your car.
Liability insurance - In case you are involved in a car accident and you have damaged people and property, liability insurance will pay the required parties. This type of coverage is required for all types of vehicles, whether for an old or a new car.
Collision and comprehensive insurance - Unlike liability insurance, collision and comprehensive insurance are not required from auto owners and can be helpful for other specific instances. Collision coverage helps repair or replace your vehicle if you have initiated an accident. Comprehensive coverage, on the other hand, protects the vehicle from instances aside from auto accidents such as weather damage, theft, vandalism and others.
Actually, there are four types of vehicle insurance including medical, PIP, and no-fault insurance as well as uninsured/underinsured insurance; however, these have nothing to do with the vehicle, which is the primary concern of this discussion.
As stated earlier, owning a used car is different from having a new car, especially when it comes to applying for the right policy. Liability used car insurance is required by the law, and so used vehicle owners should not forget to apply for this after buying their vehicle. On the other hand, they can decide whether they are going to apply for collision and comprehensive insurance, too. Unlike the first one, these two are not required, and may only depend on the needs of their vehicle. A newer vehicle more prone to vandals or theft might need a comprehensive used car insurance to make sure your car gets maintained. It may also need collision coverage so that it can be repaired or replaced in case of an accident.
Conversely, an older car might not need a collision or comprehensive coverage anymore because monthly payments might enable the owner to buy a brand new car instead. Oftentimes, used car drivers’ only concern is the payments they will be liable for in an accident. They might as well save their money to buy a new car than to apply for irrelevant auto insurance. Bottom-line, the type of used car insurance depends on the needs and condition of the car.