Many Americans buy safe, reliable and well-maintained used cars. If you’re one of them, it’s important to understand someone else owned your vehicle before you did. This means that they exposed it to usage risks that might have lessened its quality and safety.
Therefore, when you take possession of the vehicle, you might need to do some extra research. This includes paying extra attention to the types of car insurance you need. The policy you choose will likely vary.
Before Buying a Policy
When you decide to buy a used car, the first thing to do is ask questions. Unlike most new cars, used cars will have a history. So, consider things like the car’s value and previous usage.
As they age, most cars lose value. Depending on how someone used it, the depreciation might happen at different rates. If a previous owner has used a car heavily, it will likely lose value faster than a lightly-used car. Heavy use might also mean the car has existing performance or internal problems.
Factors like these might influence types of insurance you decide to buy for the car. In some cases, you might need more coverage, while in others you don't need as much. When it’s time to get a policy, as yourself these questions.
Question 1: What Coverage Must I Carry?
Most states require drivers to have auto insurance. Usually, the required coverage is liability protection.
Liability insurance protects others who are harmed as a result of the driver’s mistakes. If you are at-fault in a wreck, others involved might be able to use your liability policy to pay for their own damage. Carrying required coverage will usually apply regardless of the car you drive.
Question 2: Should I Get Other Coverage?
This is an important question for used car owners. You usually have the option to add different elements of auto insurance to your policy. Some of these elements – such as collision and comprehensive coverage - can help you repair damage to your own vehicle following accidents or other mishaps.
Still, the question is, do you really need this coverage? Let’s say that you buy a ten-year-old vehicle that is only worth a couple of thousand dollars. You might not find it practical to buy high levels of repair coverage for a vehicle with so little value. Indeed, the cost of a basic deductible might exceed the value of the car.
In such situations, used car owners should tread carefully. If you decide you need repairs coverage, get it. However, work with an insurance agent to tailor the coverage to the specific value of the vehicle. Learn what costs you might expect, and how your car’s value might influence their application.