Choosing an Auto Insurance Company For A Used Car

Reader’s Question:

What kind of policy should I look for from an auto insurance company for a used car?

Maureen

Burke, VA

Good question, when looking to get coverage from an auto insurance company it is important to take note of the advantages when insuring a used vehicle. Unlike a brand new car, owners of used vehicles need not buy a policy that has very high comprehensive and collision insurance. In fact, owners of used vehicles may opt to drop collision and comprehensive insurance or keep it to a bare minimum since filing a claim with an auto insurance company with this kind of vehicle would not be cost effective. Your policy may have a $500 deductible for comprehensive or collision but if you have a car that is around $1000only, then you would save more in the long run by having damages on your vehicle fixed out of your own expense. If you would be getting minimal comprehensive and collision you could also increase your deductible to get much lower rates that will make for cheap auto insurance.

You would need to still have adequate liability insurance coverage, as per the Financial Responsibility laws of the state of Virginia. Your policy should have at least 25/50/10 worth of coverage purchased from your auto insurance company. That would mean $25,000 for each individual you injured in an accident, $50,000 for everyone you injure and $10,000 to cover for liability due to property damages. Make sure to shop around for the best rates online.

Prices Of New Car Insurance VS Used Car Insurance

Reader’s Question:

Which is cheaper to insure: new or used cars?

James

Houston TX

Generally a used car is much cheaper to insure because the value of the car is less than that of a new vehicle. Vehicle parts and the cost of repair are being considered that is why used car compared to brand new car, are cheaper when being repaired after an accident.

However, the cost will still depend on the type of vehicle. If for example you have a brand new sedan, it will usually be cheaper to insure it than a used high performance or sports car. Collision damage cost is also being considered when comparing a new and used car insurence.

It is also taken into account if the vehicle is attractive to thieves or the type of car that is often gets stolen. In this case, car insurance will be expensive whether it is a new car or a used car.

If you are looking for a vehicle to purchase, and uncertain which type of car to purchase, the best thing to do is to get car insurence quote to determine the difference in price for each type of vehicle. You can try the comparison website above this page.