Auto Insurance for Used Cars?
Buying a car is a significant milestone in life, new or used. The various brands, makes, models, and insurance companies offer many options when shopping for a vehicle. Auto insurance is a requirement for drivers purchasing a used vehicle and a brand-new car. If you already have auto insurance, you can add your used car to your existing policy. However, navigating the used car insurance process can be overwhelming if it’s your first time buying a vehicle or you are unfamiliar with the auto insurance industry. Below, we break down some of the benefits of buying a used car, factors that can affect the cost of used car auto insurance, and how to choose a used car insurance policy.
Benefits of Buying a Used Car
One of the main advantages of buying a used car is its lower prices which leaves room for more financial negotiations when purchasing the vehicle. Many people buy a used car because of its lower price when compared to newer makes and models. Some other benefits of buying a used car include lower customization costs, no excessive fees, and flexibility with the car’s warranty.
Whether you purchase a new or used vehicle, you will need insurance, which depends on the vehicle’s value. In the next section, we offer insight into some factors that can determine the price of a used car’s insurance policy.
Factors That Affect Used Car Insurance Costs
Buying a used car can help you save money, though; insurance rates for used vehicles may not always be significantly cheaper. Many factors determine auto insurance rates, including items specific to your car. In contrast, others pertain to personal aspects such as your driving record, coverage choices, and zip code. It’s not necessary to purchase insurance until after you buy your vehicle, but getting insurance quotes beforehand can help you better understand the options and price ranges available.
The auto insurance policy price can depend on multiple factors, including the following:
- Your location
- The minimum coverage required by your state
- Your age
- The vehicle’s make and model
- Your driving record
What are the Types of Auto Insurance?
Liability: Liability coverage pays for other people’s expenses after an accident, which is required in nearly every state.
Collision: Collision insurance covers the repair or replacement of the policyholder’s car after any accident, regardless of fault. It is only required for leased or financed vehicles.
Comprehensive: These policies cover damage to the policyholder’s vehicle caused by something other than an accident.
Personal Injury Protection: Personal injury protection covers the policyholder’s direct and indirect medical expenses after an accident.
Uninsured/Underinsured Motorist: Covers vehicle damage and medical expenses after an accident with an uninsured or underinsured driver.
Medical Payments: Pays for the policyholder’s direct medical expenses after an accident.
The two most common insurance policies are liability and collision. The difference between liability and collision insurance is who’s covered. Liability insurance covers other people’s property damage and injuries after accidents caused by the policyholder. In contrast, collision insurance pays for damage to the policyholder’s vehicle after an accident, regardless of fault.
How to Obtain Auto Insurance for a Used Vehicle
When you need auto insurance coverage, you can look to Google and other search engines to find a policy that fits your needs. In addition, you can speak with insurance agents to help you make the decision. Along with maintenance, repairs, gas expenses, and more, auto insurance can take a piece of your budget, so it’s vital to keep this in mind when searching for a policy.
Purchase used car insurance with the following steps:
- Get online quotes or speak with an experienced insurance agent
- Choose your level of coverage
- Choose a deductible
- Document your price quotes to keep in mind when purchasing the vehicle
Once you have a variety of quotes and policies, you can narrow down your options to pick one that best aligns with your budget, driving needs, and the used car you are purchasing.
Contact Insure On The Spot for a Quote!
When you are taking the step to purchase a used vehicle, it’s essential to factor in your auto insurance coverage to ensure you have the protection you need. The Insure On The Spot experts can help you navigate the process so you can confidently and legally drive on the road. Contact Chicago’s #1 auto insurance agency to learn more and receive a quote!