There are many people with used cars or that are considering buying a used car. However, many people wonder about used car insurance and how the prices are for insuring used vehicles. Like any type of car, the price that you pay to get it insured will depend on many different factors. Things that can affect the price of your insurance include: the make and model of the used vehicle, the type of car, the crash safety rating, your record as a driver (e.g. have you had legal troubles as a driver?), your age, as well as your sex.
Getting a used car insured is not really any different than getting a new car insured or an old car insured. Everybody’s used car is different and everybody is different as a person so there’s no way for me to generalize and predict how much people with used cars will pay for their insurance coverage; prices are going to vary from person to person and company to company.
Insurance is ALWAYS Mandatory Whether for a New or Used Car
In nearly every state, car insurance for used cars is mandatory and you will need to get an insurance policy if you do not already have one. In some cases, there are advantages of having used cars, but there also can be drawbacks. The type of coverage that you want/need should be based on your personal needs as well as what is required in your location If you want a comprehensive car insurance policy for your used car, you can get one, but you can also expect to pay more. If you are thinking about getting third party insurance only without getting any extras, you may regret it in the event that you get into an accident.
Buying Used Car Insurance
People that are interested in purchasing insurance for a used vehicle can take advantage of shopping in many different places to find the policy that is best suited for their needs. Most people like to shop on the internet because they can do so from the comfort of their own home and can find hundreds of quotes and compare the offers from various agencies. After finding several quotes that are low priced in ratio to the amount of coverage that is being offered, people looking for insurance options can contact some of the companies that they think would be best for their used car. It is also common for people to hire brokers so that they have the help of a professional when looking for the best possible deal.
If you are looking for used vehicle insurance on your own, there are some things that you will want to keep in mind. First of all, your goal with a used car should be to get coverage that you want, through a company that you trust, at a price that you can afford. Should something happen to your used car while driving (e.g. you get into an accident), you will at least have an insurance provider to back you up. People without insurance for their used car are not only putting others at risk while they are on the road, but they are putting themselves at risk of getting into trouble with the law; in many places it is illegal to drive without having at least third-party car insurance coverage – some places even require more.
Comparison: New Car Insurance vs. Used Vehicles
When it comes to comparing used cars to new cars for insurance purposes, the way in which they differ is that when something happens to an old used car (such as major damage in an accident), it is usually written off as a loss and the driver of that vehicle may be eligible to receive monetary compensation if they were considered the victim of the accident (e.g. another party was at fault/caused the accident). The reason that insurance companies often write off used cars when they are severely damaged is due to the fact that they are able to save themselves money in the long run because cash reimbursement would result in less of a payout than fixing everything that was damaged on the vehicle. Plus, when a used car is damaged or has suffered multiple cases of damage, it often is very unsafe to keep driving on the road. Certain car repairs make for much more risky driving; there is a greater chance of something going wrong with the parts and lowered crash safety ratings.
Since used cars are no different than new cars in the fact that they can inflict damage to property, other vehicles, and people, the liability rates and coverage are not much different than that for any other type of vehicle. Obviously if you need modified vehicle insurance for your used automobile because parts of it have been altered, your costs may be increased based on the fact that parts may have been changed and may make your car worth more in overall value. Since you know that liability rates are generally the same for used cars as other types of cars, you are probably wondering whether having a used car will help you save additional money on your premiums.
Why Insuring Used Cars May be Less Expensive
Well, since you may not want comprehensive car insurance for a used car based on the fact that your used car isn’t very valuable (e.g. it isn’t expensive to replace), you will likely be able to save money in comparison to other people that are insuring new and expensive vehicles. The way you can save money is by getting a fairly minimalist car insurance policy, meaning that you probably do not want extensive or comprehensive coverage because it would not be worth it in the long run; the price that you would pay for your insurance would cost more than the car would be worth to replace in its entirety in the event of an accident.
You can still get enough coverage to keep yourself protected and feeling safe in your used car by paying only for what is required in your state. What you should really think about is the amount of physical damage that could be inflicted on your car in the event of an accident. Take the time to estimate the total value of your vehicle. If you are driving around in an expensive used vehicle, you may want to get more comprehensive coverage. But if you are driving around in an old car that isn’t worth very much (as indicated by price estimates), you would probably be better off taking a policy that is less costly. However, the policy that you decide to get is ultimately up to you – so make sure that you have taken the value of your used car into account before you buy a policy.
Deductibles for Used Cars
Although it may be a very smart idea to get a low deductible on a car that is brand new, people that have used cars may want to save themselves money by taking a high deductible. The reason that it may be in your best interest to take a higher deductible while driving a used car is because the vehicle may already have some minor damages and is obviously not in as good of condition as a new car fresh off the sales lot. Many people with used cars that are old and don’t have much value may not be very expensive to repair in the event that they endure collision damage or other wear and tear over the years.
For part replacements and relatively minor repairs, it may be smart to pay for them out of your own pocket instead of taking higher premiums with low car insurance deductibles. Generally, a rule of thumb that you can follow is that when deductibles are higher, you will be expected to pay your own money more often than if you have higher premiums/low deductibles. Should you end up dealing with an insurance claim, you may need to pay for part of it yourself without full support from the insurance company since you are taking a high deductible. There is really a lot to consider when thinking about deductibles, so make sure that you think through your personal situation carefully and make sure that you are satisfied with your choices.
How Much Used Auto Insurance Can You Afford?
In order to figure out whether you are paying a good price for your auto insurance policy, you should ask yourself how much you can afford to pay without feeling uncomfortable. If you feel as though paying for your coverage is going to be too expensive, you will likely want to take a slightly higher deductible so that you can afford your coverage. If you are paying $1500 and are satisfied, there is no reason to pay extra just to get a lower deductible. Of course, you need to analyze your particular situation and used car to figure out what would be the best decision to make regarding your insurance coverage.
For Old, Used Cars, Take the Higher Deductible
Most people agree that when dealing with used cars that are old, it is better to take higher deductibles. Although this seems to be the popular option among people with used vehicles that are old, it is completely up to you to figure out what type of policy will work best. For your car insurance coverage, you will want to make sure that you are doing a good job at assessing the price that you will be paying and then thinking about the price in relationship to the coverage that you are getting. If you are paying a lot of money for your insurance for little coverage, you are probably not getting a very good deal on your policy.
Even though a lot of people think that having a used car instead of having a new car is going to have a drastic effect on the price of car insurance premiums, there are many other factors that need to be taken into consideration by insurance companies besides the vehicle type and age. Most auto insurance companies are going to take a look at the driving history of the person in need of insurance and then assess their overall risk. If they have faced driving convictions (e.g. drunk driving), then they are going to have a much higher overall risk and this may result in a much higher price for them to pay towards their premiums.
Clean Up Your Driving Record
If you are a person that has gotten in trouble with the law while driving, it is never too late to clean up your act. In order to get the best possible deal on your insurance, you want to have as much time as you can between your last offense and the time in which you go to buy your insurance or get a quote. If you have been driving without a violation/offense for a few years, the violations that you had received in the past will be much less of importance. Doing things like taking driving courses to better your driving habits may factor in to getting a lower rate on insurance for your used vehicle. Make sure that your record is good and that you do not have a lot of recent problems with law enforcement before you go to get your insurance.
Other Factors Affecting Insurance Premiums
There are always going to be other factors that affect the premiums that you will be expected to pay for your used auto insurance policy. Things that most people may not even think much about may also affect the price of your premiums, several examples include: whether your car has good security features installed like an alarm, whether your car is parked out in the street or inside a garage, as well as the city in which you live. The more favorable these factors (e.g. if your car has a great security alarm, you park your used car inside a storage garage, and you live in a smaller city) the more favorable the cost will be on your premiums. Although not all insurance companies may take the factors discussed above into account, most do. You can always ask if there are specific things that they look for in a client in order to minimize overall risk and get a lower premium.
What Type of Used Car are you Driving?
If you are driving an old Honda Civic and it isn’t modified, you are going to get a much better rate on your car insurance for the simple fact that it is less expensive. The parts are less expensive to replace and it has lower value than say a used Aston Martin. Anytime you are dealing with a used car that is still worth a lot more than average, you can expect to pay more for your insurance coverage than the average person would pay. So if you are in position to buy a used car and want to save money on your insurance, then get a reliable vehicle that you know will not be as expensive to insure; that is if your goal is to save as much money as possible.
Remember that the type of car that you are going to be cruising around in is going to have a direct effect on the price of your car insurance. Just because you are getting used automobile insurance does not mean that it is going to necessarily be a lot less expensive than insuring a new car. If the used car is in really good condition and it is a high performance vehicle like a Lamborghini (sorry for the over-the-top example), you can expect to pay much more for your insurance. Obviously if the vehicle isn’t very aged (i.e. it is still relatively new), you will want to get standard car insurance coverage and will be paying a normal price.
The cars age and total number of miles driven on it will also have an effect on the coverage that you will be able to get. Older cars tend to have more breakdowns, especially if they have been through a lot of wear and tear and have a lot of total miles racked up. If the car is considered to be vintage or a collector’s car, it will likely be more expensive to insure because the parts are rarer and more costly than average to replace. It is always a good idea to think about whether it is in your best interest to get a car that is vintage or a collector’s item if you know that the insurance is going to be expensive for it.
What Type of Used Car is Cheapest to Insure?
Generally a cheap used vehicle to insure would be something like an Econoline minivan. The reason that it’s cheap is due to a number of different reasons. The biggest reason that a used vehicle is going to be cheap to insure is because it is cheaper to fix in the event of an accident. If it doesn’t have a bunch of fancy customizations or extras, it will have a relatively low percent chance of getting stolen as well. When buying a used car or any type of vehicle for that matter, you are going to want to get one that is safe to drive in, that has a low percent chance of getting stolen, and obviously you’ll want to make sure that it is relatively inexpensive to repair.
If you want to know what the cheapest type of vehicle is to insure, just do a search online and you’ll find a ton of different makes and models that will be less expensive than average. If you want to know specifically from the insurance companies which vehicles they charge the least amount of money for, you can always call and ask. You will want to make sure that the used car that you purchase is not one of the most stolen cars in the United States.
Certain vehicles are also better at taking collisions than others. If you buy a small used car that has poor accident protection, you will likely be paying out more to compensate for the fact that there is more of a risk of bodily injury in the event of an accident. Larger, safer vehicles tend to be lower priced as far as collision coverage is concerned. It is up to you to decide what you think the safest vehicle would be for you relative to the price you pay towards your insurance.
People that cannot make up their mind when shopping for a used car should think about which one will offer the better insurance prices. The one that costs less to insure means more savings over the long run. Always ask your insurance company for more information about vehicles that you are considering for purchase if you want to know how much they will cost to insure. Keep in mind that every insurance company has different coverage policies for drivers of used automobiles. Many insurance companies like Geico, AllState, State Farm, and Esurance can give good rates on certain models of cars, but they may charge more money on vehicles that they don’t particularly care for.
Tips to Remember When Buying Insurance for a Used Vehicle
Remember that a used car tends to have cheaper premiums for collision coverage. Also keep in mind that taking higher deductibles is the popular option for people that have used vehicles because they are able to save more money in the long run on their insurance policies. Understand that liability premiums are generally unaffected by the age of your used car – so having an old used vehicle will not guarantee you liability savings.
If you are about to buy insurance coverage for your used car, you will want to analyze the policy and amount of coverage that you are getting in comparison to the price that you will be paying for it. Always take time to gather quotes, compare policies and providers, and go with a reliable, trustworthy insurer. There is no big secret to getting good used auto insurance coverage, you’ve just got to do some research and find a company that you think would be a good fit for your vehicle and that is affordable over the long term.
Where to get Car Insurance Quotes
You can decide to get a used cars insurance quote by either contacting an insurance company directly or by searching on the internet and comparing rates of insurers. Most people these days will use the internet for getting quotes because it is easy, convenient, and you can have quotes sent directly to your email. The way that you can get a quote online (if you are interested) is by checking the websites of various insurers for a quote form that you can fill out. For most insurers, the process of getting a quote is free of charge – which is nice for you as a customer. You can quickly gather a lot of quotes and then compare the prices that you get for your used vehicle.
What Determines the Price of the Quote for your Used Car?
There are a lot of different factors that will be taken into account when you go to get your quote. Some insurers will provide a more comprehensive quote that will explain the details of coverage along with the price estimate that they give you. Certain insurers may also collect more information than others such as your credit score. However, most will ask you about your age, the make and model of your used car, your sex (male vs. female), as well as whether you have ever been involved in any traffic violations and whether you have faced conviction(s).
Comparing Used Car Insurance Rates
After you have gotten your quotes, you will want to determine which rate is the “best.” In order to find the rate that is the “best,” you will want to make sure that you look at the coverage that you can get for the price that you are going to pay. The reason that some used car insurers are going to charge you more money is because they offer more comprehensive coverage. It is up to you to decide what amount of coverage is right for your used vehicle and then to buy it so that you can legally travel in your used car. Thanks to Ray Baker for the help.