Used Auto Insurance | The bank rate

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Buying a used car often costs much less than buying a new model. Older vehicles do not depreciate as quickly as new cars. However, you will need to obtain at least the minimum levels of auto insurance in your state to be able to legally drive, whether you own a new or used car.

Not only can driving without insurance result in fines and license suspension, it can also result in direct expense for repairs and liability for at-fault loss. A used vehicle requires insurance just as much as a new car, and it’s important to learn about the coverage you need and its cost.

Insurance when buying a used car

If you weren’t insured before, buying a car before purchasing insurance might seem like a reasonable choice, but to be on the safe side, your insurance shopping should start when you plan to buy a vehicle. Knowing the cost of insurance for the car you might buy will be factored into your decision-making process. Not getting an insurance quote before buying a used car could lead to a nasty surprise; it would be a shame to save money on purchasing your car only to find out that you cannot afford the insurance.

If you already have auto insurance, you can probably add a different vehicle to your policy as soon as you have it. numberplate (NIV). Most insurance companies provide automatic coverage for newly acquired vehicles, so you don’t necessarily have to add a newly purchased car to your policy before you drive it off the lot, but you should add it as soon as possible. .

However, be sure to let your agent know that you are purchasing a car, just in case your insurance company does not provide automatic coverage for newly acquired vehicles. If you know the year, make and model of your car, you may be able to get a quote online or through your provider’s app to add the vehicle to your policy.

Insuring an older vehicle can often be cheaper than insuring a new car. This is because used cars don’t have the same value as newer models, have a lower probability of theft, and don’t always require financing. However, if the model you buy has had a high rate of claims in the recent past or lacks essential safety features, the premiums could be higher.

Types of coverage for used cars

Each vehicle must carry at least the minimum liability insurance. This amount varies from state to state. The covers include:

  • Bodily injuries
  • Damage to property
  • Medical payments

These coverages do not apply to you or your vehicle, but rather are designed to cover damage that you cause to other people and vehicles with your car. Some states also require motorists to purchase coverage for uninsured and underinsured motorists, to protect them in the event of an accident with an uninsured or underinsured motorist. Depending on where you live, you may also be required to have Protection against injuries, especially if you live in a “no fault” state. There are 12 no-fault states in the United States, and if you live in any of them, you must have PIP insurance as well as minimal coverage, which can increase the cost of insurance.

Additional auto insurance options include full coverage and collision coverage. Full coverage pays for damage to your car caused by inclement weather, theft, vandalism or collision with an animal, while collision coverage pays for damage caused by a collision with something, such as another car or a tree. Whether or not you purchase these covers will depend on what you think is needed to protect your vehicle. Speak to an agent to determine your individual insurance needs.

Cost of insurance for used cars

The cost of auto insurance is determined by a number of factors for new and used cars. Except insurance company By itself, the state and city in which you reside has an impact on your insurance premiums, as well as the type of car you drive and your driving record. A good driving record may qualify you for certain discounts from certain suppliers, even for used cars.

Age is also an important factor in car insurance premiums. Regardless of the type of car you own, your location or your insurer, if you are under 25, your premiums will be higher than for older drivers. If you’re a parent buying a used car for your teenager or young adult, be prepared for an increase in your auto insurance premiums. Adding a young driver to an insurance policy is considered a risk by insurers because young drivers have a higher accident rate than adults.

Different insurance providers have different prices, so comparing quotes from different companies is the best way to ensure you get the coverage you need without breaking the bank. The average annual cost Auto insurance in the United States is $ 563 for minimum and $ 1,738 for full coverage. Prices vary depending on location, insurance company, and considerations specific to your vehicle and driver.

Frequently Asked Questions

Do i need insurance for a used car?

Whether your car is used or new, you will need at least the minimum coverage to be able to legally drive it. Drivers who are financially able to purchase higher liability limits should do so, as minimum coverage does not guarantee that all expenses related to a loss will be covered by insurance.

How much does used car insurance cost?

In the United States, the average cost Auto insurance is $ 563 per year for minimum coverage and $ 1,738 per year for full coverage. Prices will differ from insurer to insurer and will vary depending on your specific needs, but there are ways to help. lower your premium. As always, if you’re not sure what coverage you need, seek the advice of an agent.

Methodology

Bankrate uses Quadrant Information Services to analyze rates for all postal codes and carriers in all 50 states and Washington, DC Rates shown are based on a 40 year old male and female driver with a clean driving record, a good credit and the following full coverage limits:

  • $ 100,000 liability for bodily injury per person
  • $ 300,000 in civil liability for bodily injury per accident
  • Civil liability for property damage of $ 50,000 per accident
  • $ 100,000 in bodily injury caused by an uninsured motorist per person
  • $ 300,000 in uninsured bodily injury per accident to a motorist
  • $ 500 collision deductible
  • Global deductible of $ 500

To determine the minimum coverage limits, Bankrate used minimum coverage that meets the requirements of each state. Our sample drivers own a 2018 Honda Accord, commute five days a week, and travel 12,000 miles a year.

These are sample rates and should only be used for comparison purposes. Your quotes may be different.

About the Author


Cynthia widmayer

Cynthia Widmayer has over two years of experience as an insurance and personal finance writer. It covers home, auto and life insurance products for Bankrate, Simple Dollar and Coverage.com, among others.


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