Buying a brand new car or vehicle is no joke. You will have to shell out big bucks, even loan some money to be able to purchase a vehicle that you can use. With this ongoing recession, people are choosing to buy pre-owned cars or vehicles just to be able to save some precious money. While some do not see the need for coverage because of a vehicle’s current state, used car insurance is still a requirement, especially some coverage for third party liability. This is needed for you to be able to register the car under your name with the DMV.
For liability coverage of your used car insurance, you need not worry too much. The rate for this one is relatively low because statistics on used car accidents are on the low-end as well. Moreover, your risk factor as a driver on the road will be ultimately considered for your rate. If you have zero or a minimum number of apprehensions for traffic violations, speeding and DUI, you have nothing to worry about. Your claims history will be checked too. If your accident record is clean, expect a lower cost for you. You just have to make sure that you get enough coverage for bodily injury to avoid lawsuits especially if the accident was your fault.
Basically, premiums for used car insurance are lower compared to brand new car coverage. This is only true if a policy holder decides to also subscribe to comprehensive and collision coverage. These two are not mandatory yet highly advisable to take the worries away. For comprehensive and collision coverage, one must consider how much deductibles will be. This is an amount set by the car or vehicle owner and greatly affects the rate of premiums. For a clearer view, a higher deductible means cheaper premium rates. This is also the same amount reduced from the total cost of damages in case of a claim. The remaining cost is paid for by an insurance company. For brand-new cars, consider higher deductibles. For used-cars though, you have to weigh the risk versus cost. If your vehicle is less than $2,000, deciding on a deductible becomes futile because in the first place, it will not be practical anymore to buy additional coverage other than liability.
Even if used car insurance is cheaper than the rest, be sure to shop around first before deciding which company to partner with. By doing so, you are assured that you are getting the best possible offer at the lowest possible price.