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What to Know About Insurance for Used Automobiles

January 10, 2024

auto insurance

When people need an affordable working vehicle, a used car is a common choice. The used car market is an ever-changing area with a variety of vehicles for any individual, sports cars and minivans included. Even though many people associate auto insurance with shiny new vehicles, used cars also need coverage. With all the repairs and maintenance an older car needs, insurance is an important part of this purchase.

Types of Auto Insurance Coverage

As with any car, used cars need liability-only coverage, which can cover injuries other people sustain in a vehicle crash. Liability is usually the minimum amount of coverage people must pay for insurance, with the ability to choose more complete coverage for a higher price.

Collision and comprehensive coverage, also known as full coverage, is optional and pays for the value of the individual’s car so that a person can theoretically purchase the same one if a crash occurs. Because newer cars cost more, individuals who bought a new car would get more money in this scenario than those who purchased an older vehicle.

Insurance Costs for Used Cars

The total cost of auto insurance depends on several factors, including the car’s make, age, and model, along with how much mileage it has on it. The safety features in the vehicle can affect the price, as can the insurance and driver history. Demographics of the owner, such as age and gender, also change the final number.

Considerations for Older Vehicles

Individuals who buy these used and older cars should consider the depreciation of the vehicle, which affects the overall price and value. They need to think seriously about whether or not comprehensive and collision coverage is right for them.

For some people, it may be better to pay lower insurance rates and purchase a different car out of pocket in the event of a crash. Part of choosing cost-effective coverage includes determining whether the auto insurance a person gets is right for their unique life and needs.

Tips for Choosing the Right Auto Insurance Policy

As individuals think seriously about what insurance works best for them, keeping a few tips in mind can make the decision easier. First off, they should compare and research quotes. Accepting the first quote without shopping around may lead to a mediocre, if not outright bad, deal.

People should also ask about discounts for used cars and evaluate whether the deductibles and auto insurance coverage limits are acceptable in a worst-case situation. Underinsuring can lead to many stressful and financially risky scenarios if individuals are in an accident, so it is best to avoid that choice. Even something as simple as talking to previous customers and reading reviews can make a powerful impact.

On the Road Again With Auto Insurance

Weighing the pros and cons of getting certain kinds of coverage allows consumers to make the best auto insurance deal possible for their used car purchase. Tailoring coverage to the specific needs of a used car can help. Contact us today.

About E.J. O’Neil Insurance Agency

Since 1898, E.J. O’Neil Insurance Agency has provided homeowners with reliable coverage and high-quality customer service. Today, we offer a variety of policies, including commercial, boat, automobile, homeowners, motorcycle, and renters insurance. Quotes are free by phone or online request, and we can provide notary and other services at our location. We pride ourselves on caring for customers when they need it most. To find the right coverage for your needs, call 413-594-4757 or visit us online.