Used Car Insurance Author:    Posted under: Auto InsuranceAuto Insurance by Car Types


There has always been that great car debate, shall I buy a new one, or do I settle for a second hand car?  Some of the practical buyers would always say that new vehicles lose 10% of their worth once you drive it off the lot, so why purchase a new one?  It costs much cheaper to buy a used one, and well, insuring it?  Let’s see where that takes us, read below:

New vs. Old. It’s not really the age of the car that matters, but it boils down to the driver’s track record and the history of the said car.  If you have some apprehensions given the traffic violations that you have incurred prior to purchasing insurance, do not worry. Some states offer classes to help reduce the number of tickets on your record.  However, don’t forget to maintain that good record that you have already started to build.

Coverage. The user’s potential loss for a second hand car is lesser than if s/he had a brand new car.  Used cars have lower insurance premiums for collision and comprehensive insurance.  This means that it is not necessary to maintain a high premium if you can get ample coverage at a lower cost, given that your car is already second hand.  However, used cars can still inflict the same damage on other cars, people, and other properties, so the car’s model does not affect the rates for liability coverage.

Deductibles. Low deductibles – or cash out from your own pocket – are reasonable for a brand new car.  However, for used cars, it may make more sense to take into account the wear and tear of your vehicle, and choose to forego repair for minor damages, instead of paying a considerable sum of money for a higher premium.  Remember that high premium payments mean low deductibles, and low premium payments mean high deductibles.  Ask yourself, how much are you comfortable to shell out in the event of an accident?  This should determine how much you want to have your car ensured based on this criteria.

Theft and Repair. What’s good about insuring your second hand car is that the likelihood of the car being stolen is very slim. Truth is, insurance companies would like to get your car insured because the risk they run is very low.  Even repair costs for brand new cars will cost so much more than repairing your used car.

Other factors to consider. Buyers would really have to take into account the total cost of expenditures, being the price of the car, and the cost to insure it as well.  That is regardless of whether this car is your shiny new sports car, or a weather-beaten, but reliable old sedan.  It wouldn’t hurt to do some homework before you shop. Other facts about the driver are also taken a look at by the insurance company.  The fact that you are a male or female is one.  It is said that women are more attentive on the road, and encounter less accidents.  Younger drivers are also said to belong to the high-risk group and will probably be given a higher premium, while those in the 40 to 50 age bracket are the safest group.

Keep in mind, though, that the kind of used car that you are also going to buy should be taken into consideration.  Given the points earlier, insuring a second hand sports car will still cost more than buying a second hand economy car.  Indeed, the overall picture should always be viewed.  But technically, in general, the cost to buy and insure your second hand vehicle is much lower than buying and insuring a brand new one.

http://www.intellichoice.com/article/67
http://www.mint.com/blog/goals/new-vs-used-vs-lease-a-car/
http://www.chapmanmotorsales.com/articles/insuring-your-used-car/
http://www.articlebiz.com/article/582954-1-the-advantage-of-insuring-a-second-hand-car/

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