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Auto Insurance Guide For Used Cars

Auto Insurance Guide For Used Cars

Several choose to buy used cars for their lower asking price, long-running reliability, and slightly lower auto insurance rates. Of course, with the supply chain shortage, used cars are sometimes all the dealer has on the lot at the moment. Buying a used car from a dealer is no different than buying a factory-fresh one. At the same time, getting car insurance for them also isn’t that different. This post covers everything you need to know about insuring a used car regardless of where you purchased it from and look at how different insurance rates for a used car is different than a new one.

Insurance For Used Cars

There is no specialized used car insurance for vehicles of that nature. Used cars, well, use standard car insurance just like any other vehicle. As long as you are able to prove your legal ownership of the vehicle with your name on the title, the insurance providers don’t care about the origins of the car. Since car insurance is required in nearly every state, you can’t drive a car off a lot without it. Used cars on dealer’s lots will often have car insurance offered alongside them if you already don’t have it lined up. When buying a car from a private seller, insurance will have to be immediately obtained after the sale.

Getting Car Insurance Before a Used Car

Getting car insurance or having an idea of what it will be ahead of getting a car, both new and used, is always a good idea. If you already have an idea of the used car you are going to buy, you can always get free online quotes from various local and national insurance companies to see where you stand on your upcoming rates. This also makes procuring a policy all the easier. Another important thing to consider is if you still have your current car insurance from your previous vehicle. The good news is that you don’t need to get whole new coverage from a different provider unless you choose. All you would need to do is inform your provider that you are driving another car, and they will transfer the coverage over to it since insurance follows the car and not the driver. Some providers allow a grace period between cars for their policyholders so they can get everything settled.

What Used Car Insurance Costs

The same pricing factors used to determine car insurance rates for new cars are also used for used cars. How much you pay for car insurance depends on both personal and vehicle factors. The average cost of car insurance in the United States is hard to say for certain because one good driver in one state can be paying $1,130 per year, and another somewhere else can be paying $1,890 per year. Here are some factors that influence how much you can pay for car insurance for used cars:

  • Personal factors such as age and place of residence – A general rule of thumb is that younger drivers pay more for car insurance than older drivers. This is because of a lack of driving history to accurately access risk. Zip codes of where you live also play a role as traffic and crime rates can be accessed through them. Even your marital status affects how much you pay for car insurance, albeit a little.
  • Vehicle factors such as make and model – High-speed and high-end vehicles cost more to insure due to their capabilities and maintenance. This ties into why used cars are a little less to insure –because they are older and less expensive to fix if needed.
  • Car insurance history – The objective of car insurance is to truly not use it. Your claims are noted and kept track of by insurance providers as a way to gauge risk in the underwriting process of your policy.

Why Car Insurance For Used Cars is Slightly Cheaper

As previously mentioned, a big plus to driving a used car is that the insurance costs less. Used cars often have age on them and may use parts that are less for auto shops to repair and replace. Because of this, drivers of used cars purchase full auto insurance coverage as opposed to just basic because it will cost less. Hit up the complementary online car insurance quote to see if full or basic coverage for your used car is right for you.

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