Used Car Insurance

[sam]

Hai,

I am Sam.

Insuring a used car follows the same basic guidelines as insuring a new one, with the owner's goal being to protect himself from liability should something happen to his vehicle, its occupants, or other motorists. The key difference is that if a used car is damaged or stolen and written off as a total loss, the insurer's potential loss is lower than that with a new model, so the company can charge less for the comprehensive and collision coverage, therefore lowering the premium. On the other hand, a used car can inflict just as much damage on other cars, people, structures, etc., as a new one, so liability rates aren't affected by a car's age.

Because used cars are less valuable, buyers may want to rethink some of their insurance strategies. For example, it may not be necessary to maintain high coverage for comprehensive and collision insurance, when ample coverage with lower payouts is available for a smaller premium.

"The major thing to consider is how much physical damage coverage you need on a used car," says Dick Luedke, spokesman for State Farm. "A lot of people with older cars choose not to have a lot of collision coverage."

Likewise, while a low deductible may make sense on an expensive brand-new car, used-car buyers may choose to save money by raising their deductible. Because the vehicle may already have some cosmetic wear and tear, an owner might choose to skip repairing minor collision damage, or simply go out of pocket for smaller repairs, rather than paying the higher premiums a lower deductible commands. Keep in mind, however, that the higher the deductible, the more you'll have to pay out of your own pocket in the event of a claim.

"When you're buying comprehensive and collision coverage, one of the questions you ask is, 'How much should the deductible be?' " Luedke says. "You should ask yourself, 'How much can I afford tomorrow without upsetting my financial comfort zone?' If you can pay $1,000, why pay extra for a lower deductible?"

This is especially typical among used cars, he added. "Higher deductibles are probably more common for an older vehicle for the same reasons as a lower coverage limit." But all insurance is a matter of balancing cost versus risk, and for used cars, many consumers lean toward saving money today at the risk of having to spend more in the event of a claim.

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[arnold111]

Nice thread! I really like your provided information. It's really helpful for me.
Thanks a lot!

[David Johnson]

Great thread,

Thanks a ton for providing the useful information and hope to read more from you.

Car insurance is one of the necessary evils when buying a car. You can

[Melville_kent]

you have a great information concerning to the insurance,i respect your knowledge ,but i also want to share some information towards the insurance .that is what actually insurance means,why often people doing insurance of home ,and other things
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. An insurer is a company selling the insurance. The insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
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[ricky028]

Your car insurance rates also depend upon the type of car you buy. A car with high performances will lead to higher premium as the risk of theft raises in the eyes of insurer. So it is better to buy a protected, family car, owned by a safe and stable person.

[maxjlone]

I think that insuring a used car follows the same basic guidelines as insuring a new one, with the owner's goal being to protect himself from liability should something happen to his vehicle, its occupants, or other motorists. But all insurance is a matter of balancing cost versus risk, and for used cars, many consumers lean toward saving money today at the risk of having to spend more in the event of a claim.

[matthew111]

That's a good piece information.

[moore.davidv11]

BidOnMyAuto is capable of assisting you in the process of finding a local used car that fits the specific needs of your family, your budget and your desire to have a great running used car.




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