Insurance for Used Cars
Most people commonly think that there is a vast difference between buying insurance for a new car and purchasing a policy for a used car. Although there are some variations of some details, this is generally untrue. Insurance is not put on the amount of miles you have driven; it is based upon the driver’s ability to be responsible and the type of car, no matter how old.
It should, however, be noted that there is a difference in premiums for a used car. If a used car is totaled in an accident or becomes inoperable, it will be less expensive to replace than would a newer car. Therefore, you can be charged less for certain types of coverage that factor into replacing your car. Other policies, such as property damage liability and bodily insurance liability, will more or less be the same.
Similarly to purchasing insurance for a new car, paying a higher premium is of no benefit to you, and you might consider raising your deductibles in order to lower those premiums. Although out-of-pocket expenses for small repairs and claims will increase, it would be more beneficial to the deductibles in order to pay less overall.
Insurance does not depend solely on the car; the driver is also a very large factor. Your reliability, i.e., your driving record, is something that insurance companies look at to determine the rate of liability insurance and such. If you have a spotless record, you are seen as less of a risk and will be rewarded with fair prices on most policies and their premiums. But if your record is a bit murky, it is best to mend it a little before buying insurance for your used car.
Besides the differing cost of premiums because of a car’s age, purchasing auto insurance for used cars and new cars is fundamentally the same. Auto insurance premiums are also based on where you park your car and do most of your driving; in safe, rural areas or neighborhoods known for car theft. What type of car you own- whether a family van or a sports car- will also affect your premiums, whether it is new or old.
