The difference between new and used car insurance
Insuring a used car isn’t that much different than insuring a new car. When insuring a used car, you basically follow the same guidelines that you would when insuring a new car. You will be happy to find, however, that the main difference is that you are likely to pay much less. Despite the fact that you are required by law for you to hold car insurance by the state, it is equally important to insure a used car as it is a new car. When you obtain auto insurance, not only are you protecting your car, but you are also protecting yourself, friends and family, and others that may be involved in the accident (assuming you were at fault).
Because your car is likely to be worth less than a new car, what you pay for collision and comprehensive coverage is going to be much less. Since you’re car is going to cost less to repair, and is less of a liability to your car insurance company, the need for them to recoup their losses with a higher premium isn’t necessary.
However, your are equally as likely to get in an accident in a used car as you are a new car, so in most cases, your rate for liability coverage isn’t likely to change. Depending on the age of your car, some safety features may have not been included such as anti-lock brakes (ABS) and air bags. In this case you are likely to pay more. On the other hand, newer cars with advanced safety features like rear window air bags and theft alarms can help you save on your premium. Used cars are far less likely to get stolen or vandalized so this may also help you save on your premium.
Other than these key differences, there is not much difference between insuring new cars, and insuring used cars. Your driving record, age, and gender still play a major role in determining what you pay for coverage.
So before you buy a used car, you may want to consider how the age of your car, and its safety features. If the decision between buying a new and used car comes down to money, which is usually does, don’t forget to take your car insurance premiums into consideration. It may even be a good idea to get an auto quote based on the cars you have in mind before you go car hunting, so you don’t end up paying for more than you bargained for.
If you are in the market to buy auto insurance for a used car, scroll back up to the top of this page and enter your zip code in our form above. After filling out our brief 3 page form, you will be presented with quotes from the top companies looking to insure your used vehicle.