How to Get Car Insurance for a Used Car
New cars in the USA usually carry a high price tag, so many consumers opt to buy a used car instead. When you make this purchase choice, you'll probably be wondering how to get car insurance for a used car.
Research Car Insurance - Used Car Pricing
Part of researching a used car involves determining what you'd pay to insure it. Many insurance companies have tools on their websites that enable you to enter the car's make, model, year and condition to get an estimate of the insurance premiums you'd pay. Once you have an idea of what insurance will cost, you can decide whether you want to move forward with negotiating to buy the car.
Coverage options will determine overall pricing. With a used car, you might not need the same level of coverage that you'd want for a new car.
Liability coverage is required by most states and covers any injuries that occur to people in other cars and damage to property. Minimums will be in place as required by your state, but you may want to get as much coverage as you can afford to protect yourself from out-of-pocket expenses.
Collision coverage protects you from expenses if your car is damaged in a vehicle accident or if its hit by something else.
Comprehensive coverage covers your car in the event of damage from fire, flood, vandalism, theft or another situation you can't control.
Both collision and comprehensive coverage come with deductibles, and you might decide you want to have these options with high deductibles or you could also forgo them if your used car doesn't have a high value.
Car Insurance for Salvage Title
A car with a salvage title means that it has been declared to be totaled, and it can't be driven on roadways. Legally, it's not possible to insure a car with a salvage title. But, if the car has been fixed and tested, it might qualify for a rebuilt title. This means it's been examined and found to be safe, so it can be registered, sold and driven. To insure this type of car, you can buy liability coverage, but most insurance companies won't offer full coverage with collision and comprehensive for a refurbished car.
Car Insurance: 1 Car Vs. 2 Cars
If you have more than one car, you can save money with discounts by insuring all of your vehicles on the same policy. Some insurance companies have limits on the number of cars you can place on one policy, but rules will vary. You'll probably need to purchase a uniform amount of liability coverage on all vehicles, but you can add or subtract other types of coverage.
Car Insurance for a New Car
It's easy to assume that car insurance for a new car will be more expensive, and this is often the case. However, you may be surprised at insurance policy pricing for new cars in some situations. Because new cars have more safety features, insurance rates may be lower.
Gap coverage is worth considering with a new car when you lease it or take out a loan. You'll have to pay higher premiums, but you'll be protected from having to pay the difference between the estimated value of the car and what you still owe on your contract if you total the car.