Compare Car Insurance Rates for New and Used Automobiles

When looking into new auto insurance, most don’t take into account the difference in rates for used vehicles opposed to new vehicles. Insuring automobiles is basically the same for both; however, when you compare car insurance rates you will find it is less expensive to insure used vehicles overall.

Since the value on used automobiles is lower than newer ones, insurance companies charge less for comprehensive and collision coverage. You still get adequate protection, and liability is the same as for new cars, but your premiums are lower. Another factor that influences lower rates on coverage is the fact that used cars are not as appealing to steal as new ones. Therefore, your chances of having your used automobile stolen are considerably lower.

Save More When You Compare Car Insurance Rates

Whether the automobile you’re insuring is new or used, one key tip to saving money is to compare car insurance rates online. It’s easy and you can do it from the comfort of your home with access to the internet.

• Compare at least 5 quotes from different companies
• Find the best rates insurance companies have to offer
• Narrow down your options until you find the best company for a low rate

When you compare car insurance rates for a used vehicle, you will no doubt see the savings you will obtain instantly.

3 Ways to Save Money on Used Vehicles

There are other methods of saving money than just to compare car insurance rates for used cars. Here are a few determining factors that can further bring your premiums to a minimum.

• Increase your deductible
• Opt out of costly add-ons like rental car reimbursement
• Consider reducing coverage options on older vehicles

You can increase your deductible in order to lower your premiums overall on your auto insurance. Used vehicles are usually not in tip top shape so it makes sense to increase your deductible, since any repairs you might need may be worth more than the car itself. Used vehicles are less costly to repair than brand spanking new ones. It may be more practical to pay out of pocket if you sustain damage than to pay more for your premiums. Minor damage on used vehicles can often be overlooked.

Factor in your location when you compare car insurance rates. If you drive mainly in residential areas, you could be saving a little more as you’re at a lower risk. Drivers in busy cities stand a greater chance of getting in a collision, which auto insurance companies take into account. Likewise, insurance companies don’t give preference to unsafe, urban neighborhoods.

Finally, you may want to rethink your coverage. If you have an older used vehicle worth less than $2,000 you only need liability coverage. This is because you would be paying more for collision coverage than the vehicle is actually worth. Liability coverage, of course is still necessary in the event you are in an accident to which you’re at fault. As long as you own the vehicle, you are only required to have liability coverage in most states.

Why Are Used Vehicles Easier and Cheaper to Insure?

Let’s review. You know that the value of used cars is lower than new ones. Auto insurance companies factor this and offer lower premiums as:

• They can afford to offer lower rates for comp and collision
• Used vehicles are less of a threat for theft
• It is less expensive to repair or replace used cars

When you seek to purchase your next vehicle, keep in mind how much you could save by opting for a used car. If you are still not convinced that the savings are that great, compare car insurance rates from new and used vehicles to see for yourself.