Insuring Your Used Car

Whether you are happy with the vehicle you currently own or are looking to purchase another, it is always smart to review your car insurance policy to see if you qualify for lower rates. Much depends on your driving record and the value of your car, so it is important to have a good understanding of the ways to save money. It is safe to say that the greater the value of your vehicle, the more you will pay to insure it. To be sure, this is generally speaking and it doesn't take safety features and upgrades into consideration. Learn more about the different aspects of insuring your current car, or a used model you are planning on buying.

Insuring Your Current Vehicle

Even though you may be satisfied with your current automobile and insurance policy, there are many ways to save money. You could very well be missing out on potential savings. Begin by establishing the exact amount you pay for protection. If possible, review your plan documents to see how much you spend for each element of coverage. This will make it exponentially easier to compare new rates with the amount you are currently paying. Most insurers itemize coverage types and provide the corresponding costs for easy reference.

There may be additional information you will need to provide to certain providers when buying a used car policy or comparing quotes. This includes, but is not limited to:

• The number of previous owners
• Thorough details about any accidents the vehicle was involved in
• Any mechanical problems
• Maintenance records

In order to save money on a policy, it is a good idea to keep certain factors in mind that can favorably affect your rates. For example, most insurers offer attractive discounts for insuring multiple automobiles under one plan. If you are a student with good grades, chances are you will qualify for additional savings. If your car has an anti-theft device or common safety features such as anti-lock brakes (ABS), you will likely save even more money! These discounts can translate into serious savings over the life of the used car insurance policy. Take nothing for granted when insuring your automobile!

Another thing to consider is the market value of your current auto. For example, if your car is only valued at $2,300 and you carry collision coverage with a $1,000 deductible; it might not make sense to spend the money on collision coverage if your highest amount of reimbursement in an accident is $1300. Make sure you meet the requirements for liability coverage in your state, but make sure you are not over-insured.

Insuring Your Purchase

Even if the automobile you are purchasing is pre-owned, it is still new to you. Amid the excitement in shopping for the perfect car or truck, you will want to make sure to protect your investment. So what is unique about buying protection for a pre-owned model? First, it is often less expensive to insure a safe, reliable pre-owned automobile when compared with a higher valued new or specialty vehicle purchase. While the liability coverage costs are comparable whether new or used, most drivers see a difference in collision and comprehensive coverage. Pre-owned models are almost always cheaper to insure in the latter two categories because the vehicles are typically valued lower than comparable new models.

Next, pre-owned models may require additional protection if there is no accompanying certified warranty coverage. Most new cars come with attractive warranties that cover manufacturer parts while many previously-owned models often contain custom parts and equipment which are not protected by warranties or certain basic policies.